A federal court ruled on Tuesday that the federal government acted unlawfully when it attempted to terminate New York‘s congestion pricing program.
U.S. District Judge Lewis J. Liman, an appointee of President Donald Trump during his first term, concluded that the Department of Transportation and Federal Highway Administration did not have the authority to rescind prior federal approval of the toll program.
Gov. Kathy Hochul (D-NY) hailed the ruling in a statement as a victory against the Trump administration.
“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” Hochul said. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”
The ruling sided with the Metropolitan Transportation Authority and the Triborough Bridge and Tunnel Authority, which sued after Transportation Secretary Sean Duffy sought to revoke the agreement.
The Department of Transportation railed against the ruling and called the congestion pricing policy part of the “Green New Scam.”
“We disagree with the court’s ruling,” a Transportation Department spokesperson told the Washington Examiner. “Once again, working-class Americans are being sidelined under Governor Kathy Hochul’s policies, which impose a massive tax on every New Yorker. These Green New Scam policies have made federally funded roads inaccessible to commuters without providing a toll-free alternative. We are reviewing all legal options—including an appeal—with the Justice Department. The Trump Administration will not stop fighting to make everyday life more affordable for American families.”
According to court documents, Liman rejected the federal government’s position that it could unilaterally withdraw approval, finding the agencies overstepped their authority in attempting to end the congestion pricing agreement.
In February 2025, Duffy sent a letter to New York officials stating the department would rescind its approval of the congestion pricing program and terminate the value pricing agreement that allowed the tolls to be implemented. The judge’s decision invalidates that move, allowing the program to continue.
The congestion pricing program, which began in January 2025, charges vehicles entering Manhattan below 60th Street during peak hours. Hochul said the toll revenue is critical to funding long-delayed improvements to New York City’s subway and bus systems.
In her statement, Hochul called the program a “once-in-a-lifetime success story.”
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“In its first year, congestion pricing has yielded huge benefits: reduced gridlock, faster trips, safer streets, and cleaner air, all while unlocking critical funding for mass transit upgrades,” Hochul said “I have been clear from day one: my administration will fight any unlawful effort by the Trump administration to attack the sovereignty of New York State with everything we’ve got.”
The Trump administration has argued that the program was not properly authorized under federal law and raised concerns about its structure. State officials countered that the program was approved through established federal channels and complies with governing statutes.
The Washington Examiner reached out to the Department of Transportation for comment.
