NYC Wins Congestion Pricing Legal Battle Over Feds: What To Know

NEW YORK CITY — New York City and the MTA netted an important victory in its quest to protect congestion pricing after a federal judge ruled on Tuesday that the Trump administration's move to end the program was illegal.

Judge Lewis Liman sided with New York City and the MTA in a 149-page decision released on Tuesday, according to reports.

In his ruling, Liman said that the "Defendants’ termination of the [federal authorization] was unlawful, and that any attempt to enforce the February 19 or April 21 Letter would be unlawful."

A final ruling on the program was initially expected by the end of last year but was pushed back. Opening arguments in the case resumed in late January.

In a statement following Liman's ruling, MTA Chair and CEO Janno Lieber said the congestion pricing program is legal and "It’s here to stay."

"Traffic is down, business is up, and we’re making crucial investments in a transit system that moves millions of people a day," he said.

"Today—once again—Secretary Duffy failed and New York is winning.”

Governor Kathy Hochul praised the ruling in a social media post saying Donald Trump's attempt to kill congestion pricing "just failed in court — and in spectacular fashion."

"I've said it before, and I'll say it again: The cameras are staying on."

The MTA had sued the Trump administration over the future of congestion pricing after the Department of Transportation revoked federal authorization of the toll.

President Donald Trump had initially given the MTA until March 18 to end the program and tolls to allow for an "orderly cessation." That deadline went and passed, with Hochul along with MTA officials saying the tolls would continue to stay on.

In an attempt to pressure the city to end the program, U.S. DOT Chief Sean Duffy threatened to hold up funds for some federally funded road projects in the city.

Since the toll began last year, speeds on Manhattan crossings are up 23 percent and air pollution is the congestion zone is down 22 percent.

In addition, the city saw a 6.3 percent increase in sales tax revenue and office leasing rose by 9.2 percent, officials said.

The funds from the toll will help the LIRR and Metro-North get 300 new train cars and the MTA plans to purchase 400+ subway cars, and make 23 subway stations more accessible.

Projects like modernize signals on the A and C lines, along with paying for the next phase of the Second Avenue Subway, will also be funded.

In September 2025, officials touted that nearly 18 million fewer vehicles entered Manhattan since congestion pricing began.

On Jan. 5, 2025, drivers began paying $9 to drive into the congestion zone during peak hours. The zone runs from 60th Street to the lower tip of Manhattan.

President Trump has been vocal about killing the program, calling it "ridiculous" in previous Truth Social posts.

Despite Tuesday court victory, congestion pricing still faces a number of other legal challenges.