A federal judge has blocked the Trump administration's attempt to scrap New York's pioneering congestion charge, ruling that the US Department of Transportation lacked the authority to unilaterally rescind approval of the $9 toll.
US District Judge Lewis Liman sided with the Metropolitan Transportation Authority (MTA), which argued the department's reversal was 'arbitrary and capricious' due to inadequate reasoning. In his 149-page ruling, Liman noted the toll was passed by New York's legislature, signed into law by the governor, and received necessary federal approvals before launching on 5 January 2025.
Governor Kathy Hochul hailed the decision as a 'once-in-a-lifetime success story', stating: 'The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly.' The MTA reported the toll has reduced traffic by 27 million vehicles in Manhattan's core, cut air pollution by 22%, and generated over $550 million for public transport.
The congestion pricing scheme, which applies to most vehicles entering Manhattan south of Central Park, varies by vehicle type and time of day, typically costing around $9. Similar schemes exist in London, Stockholm, Milan, and Singapore, but this is the first in the US.
President Trump, whose Trump Tower lies within the zone, had vowed to kill the plan. His transportation secretary, Sean Duffy, rescinded federal approval in February 2025, calling the toll 'a slap in the face to working-class Americans'. However, Judge Liman temporarily blocked that move and dismissed related lawsuits from New Jersey's governor, teachers' unions, and a trucking group.
The MTA's CEO, Janno Lieber, said: '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.' The ruling leaves the door open for future attempts to end the programme.
