Federal Judge Upholds New York's Congestion Toll into Manhattan

Trump administration's efforts to block the toll were rejected by the court.

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 for New York's first-in-the-nation congestion fee, which was initially green-lighted by former President Joe Biden. The judge sided with the Metropolitan Transportation Authority, which argued the department's reversal was 'arbitrary and capricious'.

Why it matters

The congestion toll is aimed at reducing traffic and generating revenue for New York's aging transit system. It has faced opposition from former President Trump, whose properties are located within the congestion zone, as well as other critics who argued it would hurt working-class Americans and small businesses.

The details

The $9 toll applies to most vehicles driving into Manhattan south of Central Park, in addition to existing bridge and tunnel tolls. The toll varies by vehicle type and time of day. In its first year, the program 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 congestion toll took effect on January 5, 2025.
  • The federal judge issued his 149-page ruling on March 4, 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 for 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 'arbitrary and capricious'.

Donald Trump

The former president who strongly opposed the congestion toll, as his Trump Tower and other properties are located within the congestion zone.

Kathy Hochul

The current governor of New York who initially paused the planned rollout of the congestion toll in 2024 due to economic concerns, but later decided to lower the fee and support the program.

Janno Lieber

The CEO of the Metropolitan Transportation Authority, who touted the benefits of the congestion toll, including reduced traffic, increased business, and crucial investments in the transit system.

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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 (wbal.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, CEO of the Metropolitan Transportation Authority (wbal.com)

What’s next

The judge's ruling leaves the door open for future attempts by Trump and other opponents to challenge the congestion toll program.

The takeaway

The federal court's decision upholds New York's first-in-the-nation congestion toll, which aims to reduce traffic, improve air quality, and generate much-needed revenue for the region's aging transit system, despite strong opposition from former President Trump and other critics.