NEW YORK — The Trump Administration’s effort to kill New York’s congestion tolling program — which helps fund Metropolitan Transportation Authority capital projects — has been ruled illegal by a federal judge.
The government cannot revoke its previous approval of the program, U.S. District Court Judge Lewis L. Liman wrote in a 149-page ruling today (March 3, 2026).
It would be hard, Liman wrote, to imagine “a more definitive repudiation of contractual obligations by any party to any form of agreement” that that contained in the administration’s Feb. 19, 2025, letter demanding an end to the program. That letter, from Transportation Secretary Sean Duffy to New York Gov. Kathy Hochul, contended the Federal Highway Administration’s prior approval “was not authorized by law” because of a lack of non-toll options for drivers, and because it was intended to raise money for the MTA rather than reduce congestion. [See “New York MTA sues …,” Trains.com, Feb. 19, 2025].
In a press release announcing the letter, Duffy called the program “a slap in the face to working class Americans and small business owners.” President Donald Trump — who had said during his campaign that he would kill the tolling program — wrote in a social media post that day, “Congestion pricing is dead. Manhattan, and all of New York is saved. Long live the king!”
That drew a sharp response from Hochul, who said in a statement, “We are a nation of laws, not ruled by a king. … We’ll see you in court.” The MTA filed suit that day.
Among the government’s arguments was that its move to revoke the federal permission was not final, and therefore was not subject to court review. Liman rejected that argument, noting that Duffy’s Feb. 19 letter said “in no uncertain terms that ‘I am rescinding FHWA’s approval’” of the program. “Accepting the Secretary’s view as to the finality of agency action here,” the judge wrote, “would permit any government agency to forever frustrate judicial review, by the mere expedient of offering, on the eve of review of what otherwise was a final agency action, that the agency was prepared to reconsider.”
Hochul and the MTA were both quick to issue statements following today’s ruling.
“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” Hochul said in her statement. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”
Hochul also called the tolling program “a once-in-a-lifetime success story” that has “yielded huge benefits: reduced gridlock, safer streets, and cleaner air, all while unlocking critical funding for mass transit upgrades.”
Said MTA CEO Janno Lieber, “We’ve said it all along, and Judge Liman’s clear, detailed ruling leaves no doubt: congestion pricing is legal. It’s here to stay. And it works. Traffic is down, business is up, and we’re making crucial investments in a transit system that moves millions of people a day.”
The New York Times reports that a Department of Transportation spokeswoman said the agency was considering an appeal of the ruling, saying the tolling program “made federally funded roads inaccessible to commuters without providing a toll-free alternative.”
Liman, the judge who issued today’s ruling, had previously allowed the tolling to continue while the matter was decided in court [see “Federal judge issues temporary restraining order …,” Trains.com, May 27, 2025].
The tolling program, which launched on Jan. 5, 2025, covers Lower Manhattan below 60th Street, save for some key perimeter highways and one tunnel. It charges $9 for most vehicles entering the area during peak hours. The state and MTA have offered extensive statistics showing the benefits of the program [see “New York, MTA say first year of congestion pricing is a success,” Trains.com, Jan. 6, 2026].
— Updated at 5:10 p.m. CT with DOT considering appeal, additional details. To report news or errors, contact trainsnewswire@firecrown.com.
