Federal Judge Rules New York City Congestion Pricing Is Legal

The ruling is a major victory for the city's efforts to reduce traffic and fund public transit.

Mar. 3, 2026 at 9:50pm

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A federal judge has ruled that the Trump administration's attempt to block New York City's congestion pricing program was unlawful. The judge found that the Department of Transportation did not have the authority to revoke federal approval for the program, which charges drivers a fee to enter Manhattan's busiest areas during peak hours. The ruling clears the way for the city to move forward with the program, which aims to raise $1 billion annually for public transit improvements.

Why it matters

Congestion pricing is a controversial but increasingly popular policy tool used by cities to reduce traffic, improve air quality, and generate revenue for public transportation. The Trump administration's efforts to block the program in New York City were seen as a politically motivated attack on a Democratic-led initiative. The judge's ruling affirms the legality of the program and is a significant victory for the city's efforts to address its transportation and environmental challenges.

The details

In February 2025, the Trump administration's Transportation Secretary Sean Duffy revoked federal approval for New York's congestion pricing program, claiming it was a financial burden on commuters. The Metropolitan Transportation Authority (MTA) promptly sued the Department of Transportation, and on Tuesday, a federal judge ruled in the MTA's favor. The judge found that Duffy's actions were "arbitrary and capricious" and that the DOT did not have the authority to dismantle a program established by a previous administration.

  • In January 2025, New York City officially began enacting the congestion pricing program.
  • In February 2025, the Trump administration's Transportation Secretary Sean Duffy revoked federal approval for the program.
  • In February 2025, the MTA filed a lawsuit against the DOT's decision.
  • On Tuesday, March 3, 2026, the federal judge ruled in the MTA's favor.

The players

New York City

The city that implemented the congestion pricing program.

Metropolitan Transportation Authority (MTA)

The agency that filed the lawsuit against the Trump administration's attempt to block the congestion pricing program.

Sean Duffy

The Trump administration's Transportation Secretary who revoked federal approval for the congestion pricing program.

Judge Lewis Liman

The federal judge who ruled that the Trump administration's actions were unlawful and that the congestion pricing program can move forward.

Kathy Hochul

The Governor of New York who praised the court's ruling and vowed to fight any unlawful efforts to undermine the state's sovereignty.

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What they’re saying

“Congestion pricing is legal, it works, and it is here to stay.”

— Kathy Hochul, Governor of New York

“An unelected administrative agency may not make decisions affecting large segments of the public based on what comes to mind at the moment. It must engage in reasoned decisionmaking.”

— Judge Lewis Liman

What’s next

The congestion pricing program is expected to gradually increase the toll to $15 by 2031, with the goal of generating $1 billion annually for public transit improvements.

The takeaway

The federal court's ruling affirms the legality of New York City's congestion pricing program and represents a significant victory for the city's efforts to address traffic, pollution, and transportation funding challenges. The decision also serves as a rebuke of the Trump administration's attempts to undermine state and local initiatives it opposed for political reasons.