Federal Judge Rules Manhattan's Congestion Pricing Can Continue

Trump administration's attempt to revoke approval for the program was unlawful, judge says.

Published on Mar. 4, 2026

A federal judge has ruled that Manhattan's congestion pricing program can continue, handing a victory to the Metropolitan Transportation Authority. The judge said the Trump administration's attempt to revoke approval for the program was unlawful, calling the decision "arbitrary and capricious." The congestion pricing program went into effect last year in an effort to reduce traffic congestion during peak hours and raise funds for the city's public transit system.

Why it matters

The ruling is a significant win for New York City, which has been working to implement the first congestion pricing program in the United States. The program is aimed at reducing traffic and generating revenue for public transportation, but faced legal challenges from the Trump administration.

The details

Under the congestion pricing program, passenger vehicles are charged $9 to access Manhattan below 60th Street during peak hours. There are also surcharges for taxis, ride-hailing services, small trucks, charter buses, and large trucks. The Trump administration had moved to reverse approval of the program last year, but the federal judge reaffirmed an order from last May upholding the program.

  • The congestion pricing program went into effect last year.
  • The Trump administration moved to reverse approval of the program last year.
  • The federal judge issued a 149-page ruling on March 3, 2026 allowing the program to continue.

The players

Judge Lewis Liman

The federal judge who ruled that Manhattan's congestion pricing program can continue, calling the Trump administration's attempt to revoke approval "arbitrary and capricious."

Metropolitan Transportation Authority

The agency that oversees the congestion pricing program in Manhattan, which was handed a victory in the federal court ruling.

Trump administration

The previous presidential administration that had moved to reverse approval of the congestion pricing program, but was ruled against by the federal judge.

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What they’re saying

“It is difficult to imagine more arbitrary and capricious decision-making than that at issue here.”

— Judge Lewis Liman (mycentraloregon.com)

“The [Value Pricing Pilot Program] was passed by Congress. The [Traffic Mobility Act] was passed by democratically elected legislators and signed by a Governor elected by the people of New York. The [Value Pricing Pilot Program] Agreement was authorized by a Secretary nominated by a duly elected President and confirmed by the Senate. The democratic process worked.”

— Judge Lewis Liman (mycentraloregon.com)

What’s next

The Trump administration is free to continue to make public statements and ask the Secretary of Transportation to look into whether there are lawful means to end the congestion pricing program, but the judge stopped short of completely barring the administration from challenging the program again.

The takeaway

The federal court ruling is a significant victory for New York City's efforts to implement the first congestion pricing program in the United States, which aims to reduce traffic and generate revenue for public transportation. The judge's decision affirmed that the program was the product of a democratic process and cannot be arbitrarily revoked.