Judge’s Ruling Blocks Fed’s Push to Kill Congestion Pricing in New York City

The congestion pricing program was instituted in January 2025 and during its first year in operation, congestion pricing raked in more than $550 million for the MTA’s $15-billion capital program.

Judge’s Ruling Blocks Fed’s Push to Kill Congestion Pricing in New York City
The congestion pricing program in New York City generated more than $550 million for the MTA’s capital program in 2025.

NEW YORK—In another blow to the Trump Administration’s campaign to kill New York City’s congestion pricing program, U.S. District Judge for the Southern District of New York Lewis Liman ruled that the federal government’s efforts were unlawful.

On March 3, Judge Liman stated Transportation Secretary Sean Duffy doesn’t have the authority to revoke federal approval for the program and granted summary judgement in favor of the Metropolitan Transportation Authority, according to multiple published reports.

On Feb. 19, 2025, U.S. Transportation Secretary Sean Duffy sent a letter to New York Governor Kathy Hochul purporting to “terminate” the agreement authorizing the Congestion Pricing program. Sec. Duffy claimed that he had discovered an unwritten restriction in federal law, a secret loophole establishing that the Congestion Pricing Program had never been lawfully authorized to begin with. An hour later, the White House posted a statement from President Trump: “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” The White House accompanied the statement with an image of President Trump, wearing a crown, posed against the Manhattan skyline. The MTA quickly filed suit against Sec. Duffy charging that the federal government had previously approved congestion pricing under the Biden administration and that Sec. Duffy did not have the authority to terminate the program.

The congestion pricing program was instituted in January 2025 and during its first year in operation, congestion pricing raked in more than $550 million for the MTA’s $15-billion capital program, significantly higher than the $500 million projected by the MTA.

Proponents of congestion pricing immediately came out praising the judge’s ruling, vowing that congestion pricing is here to stay.

MTA Chair and CEO Janno Lieber said, “We’ve said it all along, and Judge Liman’s clear, detailed ruling leaves no doubt: congestion pricing is legal. It’s here to stay. And it works. Traffic is down, business is up, and we’re making crucial investments in a transit system that moves millions of people a day. Today—once again—Secretary Duffy failed and New York is winning.”

New York Gov. Kathy Hochul stated, “Congestion pricing has been a once-in-a-lifetime success story. 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. 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. Today, we won again.”

She continued, “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. The cameras are staying on.”

Kate Slevin, Executive Vice President of the Regional Plan Association, said, “Today’s summary judgement in favor of the Metropolitan Transportation Authority by Judge Lewis Liman finally puts to rest the needlessly expensive and onerous legal challenges to the nation’s first-ever Congestion Relief Program. Not only has the program withstood more than a dozen legal challenges, this latest ruling signals the robust success of the program that not only New Yorkers, but commuters and residents across the region, have enjoyed for over a year now.”

Ms. Slavin added that the Congestion Pricing Relief Program has delivered a host of beneficial results, including:

  • Since launching on Jan. 5, 2025, roughly 27 million fewer vehicles have entered the congestion relief zone (CRZ) than in 2024.
  • Commuters, including drivers, saving as much as 17 minutes on their trips throughout the region, with bus speeds increasing by up to 24%.
  • Particulate matter (PM2.5) decreased 22% in the CRZ, along with declines across the five boroughs and surrounding suburbs
  • More than $550 million has been raised to modernize subways, support good jobs, and expand accessibility at 23 subway stations, including seven already underway
Author
John Jordan

Editor, Real Estate In-Depth

View articles

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to Real Estate In-Depth.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.