Federal Judge Upholds New York's Congestion Toll into Manhattan

Ruling rejects Trump administration's efforts to block the fee, which aims to reduce traffic and fund transit

Published on Mar. 4, 2026

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A federal judge has ruled that the U.S. Department of Transportation lacked the authority to rescind approval of New York's first-in-the-nation congestion fee, which charges most vehicles driving into Manhattan south of Central Park. The judge sided with the Metropolitan Transportation Authority, which argued the department's reversal was 'unlawful' because it did not adequately explain its reasoning. The ruling vindicates the congestion pricing program, which took effect in January 2025 and has already generated over $550 million in revenue for the region's transit system.

Why it matters

Congestion pricing schemes are common in other global cities but have faced opposition in the U.S. The New York program was strongly opposed by former President Trump, whose properties are located within the congestion zone. The judge's decision upholds the democratic process that led to the toll's implementation and rejects the Trump administration's attempts to unilaterally block it.

The details

The $9 congestion toll is imposed on most vehicles driving into Manhattan south of Central Park, in addition to existing bridge and tunnel tolls. The fee varies by vehicle type and time of day. In its first year, the toll has led to 27 million fewer vehicles entering the congestion zone, resulting in 22% less air pollution and 23% faster commute times for drivers. The revenue generated has exceeded projections and is being used to fund critical transit system upgrades.

  • The congestion toll took effect on January 5, 2025.
  • In February 2026, the U.S. Department of Transportation initially rescinded federal approval for the toll, but a federal judge blocked that action in March 2026.

The players

U.S. District Judge Lewis Liman

The federal judge who ruled that the U.S. Department of Transportation lacked the authority to rescind approval of New York's congestion toll.

Metropolitan Transportation Authority (MTA)

The agency that argued the Department of Transportation's reversal of the congestion toll approval was 'unlawful' and that the judge sided with in the ruling.

Former President Donald Trump

A vocal opponent of the congestion toll, whose properties are located within the congestion zone.

Governor Kathy Hochul

The Democratic governor of New York who supported the congestion pricing program and celebrated the judge's decision as a 'once-in-a-lifetime success story.'

Sean Duffy

The former Transportation Secretary under the Trump administration who initially rescinded federal approval for the congestion toll, which the judge ruled was 'arbitrary and capricious.'

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What they’re saying

“The judge's decision is clear: Donald Trump's unlawful attempts to trample on the self-governance of his home state have failed spectacularly. Congestion pricing is legal, it works, and it is here to stay.”

— Governor Kathy Hochul (newser.com)

“Once again, working-class Americans are being sidelined under Governor Kathy Hochul's policies, which impose a massive tax on every New Yorker.”

— U.S. Department of Transportation (newser.com)

“Traffic is down, business is up, and we're making crucial investments in a transit system that moves millions of people a day. New York is winning.”

— Janno Lieber, MTA CEO (newser.com)

What’s next

The U.S. Department of Transportation says it is reviewing its legal options, including the possibility of appealing the judge's ruling.

The takeaway

The federal judge's decision upholds the democratic process that led to the implementation of New York's congestion pricing program, rejecting the Trump administration's attempts to unilaterally block it. The program has already shown benefits in reducing traffic and generating critical funding for the region's transit system, demonstrating that congestion pricing can be an effective policy tool in major cities.