A federal judge has ruled that the U.S. Department of Transportation cannot force New York City to end its controversial congestion pricing program, delivering a legal setback to President Donald Trump’s push to eliminate the toll system.
The decision, issued Tuesday by U.S. District Judge Lewis Liman, determined that the federal government’s attempt to terminate the program earlier this year violated legal procedures.
The ruling keeps the congestion pricing system in place for now while the broader political and legal fight continues.
Federal Judge Blocks Transportation Department Effort
Judge Liman had previously issued a temporary restraining order in May preventing federal officials from withholding transportation funding from New York over the program.
In his latest ruling, the judge concluded that the Trump administration’s February 2025 effort to dismantle the congestion pricing plan was not legally justified.
In a strongly worded opinion spanning nearly 150 pages, Liman criticized the decision-making process used by federal officials.
Judge Liman wrote that the actions taken in the case reflected a level of decision-making that was difficult to view as anything other than highly arbitrary and unreasonable.
The ruling also found that Transportation Secretary Sean Duffy acted unlawfully when he warned that federal funding for New York transportation projects could be withheld unless the state eliminated the congestion pricing system.
Officials from the U.S. Department of Transportation did not immediately release a public response following the decision.
What New York’s Congestion Pricing Program Does
New York City’s congestion pricing system took effect in January 2025 and charges most passenger vehicles a $9 toll during peak hours to enter Manhattan south of 60th Street.
Supporters of the program say it was designed to accomplish two goals:
- Reduce gridlock in Manhattan
- Generate funding for public transportation improvements
The system uses electronic license plate readers to automatically charge drivers entering the designated zone.
Federal approval was required because several of the affected roadways are part of the federal highway system.
The program received its original federal approval in November 2024 under former President Joe Biden’s administration.
Trump Has Repeatedly Opposed the Plan
President Trump has been a consistent critic of congestion pricing, arguing that the toll unfairly burdens commuters and working Americans who rely on their vehicles.
Trump has also questioned whether the program is truly about reducing traffic or simply generating new government revenue.
In February 2025, the president highlighted federal efforts to block the toll program in a social media post that read:
“LONG LIVE THE KING!”
The White House later shared a satirical image of Trump wearing a crown, drawing both criticism and support online.
New York Officials Say the Program Is Working
New York Governor Kathy Hochul has defended the congestion pricing system, arguing that early data shows the program is already reducing traffic in Manhattan.
According to state officials:
- 27 million fewer vehicles entered the congestion zone during the program’s first year
- Commute times have been reduced by up to 15 minutes each way in some areas
- The program has generated approximately $550 million in revenue
State leaders say those funds are helping support $15 billion in financing for major transit infrastructure projects, including subway upgrades and regional transportation improvements.
Critics Say Drivers Are Paying the Price
Despite those claims, congestion pricing has faced heavy criticism from drivers, commuters, and transportation advocates.
Opponents argue the program effectively creates another financial burden for people who must drive into Manhattan for work or business.
Transportation Secretary Sean Duffy has previously argued that the system leaves drivers without a true toll-free alternative route and disproportionately affects working families.
Critics also say the policy could push traffic and congestion into surrounding neighborhoods as drivers try to avoid the toll zone.
A Growing National Debate
New York’s congestion pricing system is the first program of its kind in the United States, but similar policies already exist in cities such as London and Singapore.
Supporters say these systems help reduce traffic and pollution in crowded urban centers.
However, critics warn that such policies could gradually expand to other American cities and lead to additional costs for drivers nationwide.
For now, Judge Liman’s ruling means New York’s congestion pricing system will remain in place while legal challenges continue.
With billions of dollars in transportation funding at stake—and strong political opinions on both sides—the fight over congestion pricing is far from over.