White House dealt another blow in NYC congestion toll case

MANHATTAN (CN) — A federal judge on Wednesday kneecapped the Trump administration’s war on New York City’s congestion pricing toll, finding that its efforts to ax the first-in-the-nation program are likely unlawful.

The toll, which started in January has long been in the sights of President Donald Trump and his Transportation Secretary Sean Duffy. Duffy announced plans to kill the program in February, claiming that it ran afoul of federal law.

But U.S. District Judge Lewis Liman didn’t buy Duffy’s argument that the program was outside of the purview of the Federal Highway Administration’s Value Pricing Pilot Program (VPPP), which gives local transportation agencies the ability to manage traffic with programs like congestion pricing.

Liman, a Trump appointee, found that the Trump administration was “unable to overcome the myriad evidence” demonstrating that New York’s program was indeed lawful.

“They do not point to a single historical source that supports their view,” the judge said of the administration.

Liman’s 109-page order grants state transit agencies, including the Metropolitan Transit Authority and the Triborough Bridge and Tunnel Authority, a preliminary injunction that protects congestion pricing from Trump’s efforts to dismantle it. The agencies sued earlier this year over those efforts.

The injunction also protects New York from potential sanctions, which the Trump administration threatened to impose for failing to comply with Duffy’s orders to stop the toll.

Those “compliance measures,” which include withholding federal approval for Manhattan transit projects, could have started as early as Wednesday, according to an April 21 letter from the Department of Transportation.

“Defendants are enjoined from taking any of the ‘compliance measures’ set forth in the April 21, 2025 letter including withholding federal funds, approvals, or authorizations from New York state or local agencies to enforce compliance,” Liman wrote.

In that April 21 letter, Duffy gave New York “one last chance” to comply with federal orders — or prove why congestion pricing doesn’t violate federal law.

Liman found the letter “bespeak[s] insincerity.”

“They offered dialogue as a tack-on to their threats of imminent punitive action if plaintiffs did not cease tolling,” he wrote. “There is no evidence that the secretary is seriously considering whether he erred as a matter of law in his conclusion that the VPPP does not give authority to approve the tolling program.”

New York Governor Kathy Hochul and state transit agencies have been steadfast in their commitment to keep the toll running, unless a court deems it unlawful. Hochul’s spokesperson Avi Small celebrated Liman’s ruling.

“Congestion pricing is legal and it’s working, delivering better infrastructure for millions of working class New Yorkers who use public transit as well as faster commutes for those who drive cars,” Small said in a statement. “And that’s why Governor Hochul is keeping the cameras on.”

“Congestion pricing isn’t just surviving, it’s thriving," MTA Chair and CEO Janno Lieber said in a statement. “We’re pleased that Judge Liman has put a stop to threats by Washington intended to deprive New Yorkers of the benefits of the program — less traffic, safer streets, cleaner air and better transit.”

A Department of Transportation spokesperson didn’t immediately respond to requests for comment.

While congestion pricing has been a contentious political issue since its implementation this year, early results have been promising. Data shows that the program has been successful in reducing traffic congestion and raising funds for New York City’s aging transportation infrastructure.

The toll is slated to raise $1 billion per year for the city’s trains and buses by charging most cars a $9 daily toll to enter Manhattan’s central business district during peak hours.

Liman found the Trump administration does not “seriously contest” the purported environmental, productivity, health and safety benefits.

His order came a day after parties met in court to debate the injunction. Liman was sympathetic to the arguments from the state transit agencies which argued allowing the Trump administration to kill congestion pricing “would give the government the unilateral right to terminate any contract they enter into,” since the project received federal approval under the last administration.

Liman agreed that, under that precedent, future plaintiffs would risk having policies “pulled out from under their feet” every time a new administration took office.

After those arguments, Liman issued a temporary restraining order barring the administration from pursuing its war on congestion pricing until June 9. His Wednesday ruling extends that bar indefinitely.

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