Federal Judge Upholds NYC's Congestion Pricing Plan

Ruling blocks Trump administration's efforts to halt the $9 toll on drivers entering Manhattan

Mar. 3, 2026 at 9:08pm

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A federal judge has ruled that the U.S. Department of Transportation lacked the authority to unilaterally rescind approval of New York's first-in-the-nation congestion fee, siding with the Metropolitan Transportation Authority's argument that the department's reversal was "unlawful" because it did not adequately explain its reasoning. The judge noted that the democratic process worked, as the state legislature passed the toll and it received necessary federal approvals before launching in January 2025.

Why it matters

Congestion pricing schemes aimed at reducing traffic pollution and encouraging public transit use have long existed in other global cities, but not in the U.S. until New York implemented its plan. The ruling upholds the state's ability to enact this policy, which has already yielded benefits like reduced gridlock and increased transit funding in its first year.

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. Former President Trump, whose properties are within the congestion zone, has strongly opposed the plan, and his Transportation Secretary rescinded federal approval last year before the judge blocked that move.

  • The congestion pricing plan took effect on January 5, 2025.
  • The plan marked its first anniversary in January 2026.

The players

Kathy Hochul

The Democratic governor of New York who has been a vocal supporter of the congestion pricing plan.

Donald Trump

The former U.S. president who strongly opposed the congestion pricing plan, as his Trump Tower and other properties are within the congestion zone.

Sean Duffy

The former U.S. Transportation Secretary under President Trump who rescinded federal approval of the congestion pricing plan, calling it "a slap in the face to working-class Americans and small business owners."

Lewis Liman

The U.S. District Judge who ruled that the Department of Transportation lacked the authority to rescind approval of the congestion pricing plan.

Janno Lieber

The CEO of the Metropolitan Transportation Authority, who touted the benefits of the congestion pricing plan in its first year.

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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.”

— Kathy Hochul, Governor of New York

“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

“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, CEO, Metropolitan Transportation Authority

What’s next

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

The takeaway

This ruling upholds New York's ability to implement a congestion pricing plan, which has already shown benefits like reduced traffic and increased transit funding in its first year. It demonstrates how cities can use such policies to address transportation and environmental challenges, despite political opposition.