Federal Judge Upholds NYC Congestion Fee, Rejecting Trump's Attempt to Axe It
A federal judge has decisively blocked President Donald Trump's administration's efforts to halt New York's pioneering congestion fee, marking a significant victory for the state's transportation authority and Governor Kathy Hochul. The ruling, issued by U.S. District Judge Lewis Liman on Tuesday, asserts that the U.S. Department of Transportation lacked the legal authority to unilaterally rescind approval of the $9 toll, which was initially authorised under former Democratic President Joe Biden.
Judge's Ruling and Legal Basis
In a comprehensive 149-page decision, Judge Liman sided with the Metropolitan Transportation Authority (MTA), which argued that the department's reversal was "arbitrary and capricious" due to insufficient explanation. The judge emphasised that New York's legislature passed the toll, it was signed into law by the governor, and it received all necessary federal approvals before its implementation in January 2025. Liman noted, "The democratic process worked," while acknowledging that future challenges by Trump and other opponents remain possible.
Governor Hochul's Response and Program Benefits
Governor Kathy Hochul hailed the decision as a vindication of what she called a "once-in-a-lifetime success story." In a statement, she declared, "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." Hochul, who is up for reelection, initially paused the toll in 2024 over economic concerns but later supported it after reducing the fee from $15 to $9.
As the program celebrated its first anniversary in January, Hochul and the MTA highlighted its substantial benefits. According to a recent MTA report, the toll has resulted in approximately 27 million fewer vehicles entering central Manhattan, leading to a 22% reduction in air pollution and 23% faster commute times for drivers who pay the fee. Additionally, the toll has generated over $550 million in revenue for the region's aging transit system, exceeding initial projections.
Trump's Opposition and Broader Context
President Trump, whose properties including Trump Tower are located within the congestion zone, has vehemently opposed the program. During his presidential campaign, he vowed to eliminate New York's plan upon taking office. In February of last year, his transportation secretary, Sean Duffy, rescinded federal approval, calling the toll "a slap in the face to working-class Americans and small business owners" and threatening to withhold federal funding if it continued. However, Judge Liman temporarily blocked these threats pending his final ruling.
Congestion pricing schemes, designed to reduce traffic pollution and promote public transit use, are common in global cities like London, Stockholm, Milan, and Singapore, but New York's implementation marks a first for the United States. The toll applies to most vehicles driving into Manhattan south of Central Park, with costs varying by vehicle type and time of day, typically around $9, in addition to existing bridge and tunnel tolls.
Economic Impact and Future Outlook
Contrary to concerns that the toll would harm the local economy, the MTA reports that sales tax revenues, office leases, and foot traffic in the congestion zone have all increased since its inception. Janno Lieber, the MTA's CEO, stated on Tuesday, "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."
Judge Liman previously dismissed lawsuits from various opponents, including New Jersey's governor, unionised teachers in New York City, a trucking industry group, and local suburban leaders. Spokespersons for the U.S. Department of Transportation did not immediately respond to requests for comment on the ruling.
