Judge: Move to Kill NYC Congestion Plan Was Illegal

New York's congestion toll just cleared a big legal roadblock, and the federal judge didn't mince words. In a 149-page ruling Tuesday, US District Judge Lewis J. Liman said the Trump administration acted unlawfully when it tried to pull federal approval for New York's congestion pricing and threatened to choke off funding for other state transportation projects if the tolls weren't scrapped, the New York Times reports. He called the administration's 2025 reversal "a repudiation" of its obligations, effectively wiping out everything Washington has done so far to stop the plan.

Liman, a Trump appointee, said Transportation Secretary Sean Duffy's attempts to end the plan were "arbitrary and capricious, an abuse of discretion, and not in accordance with law," USA Today reports. He noted that the plan was approved by the state legislature and received the necessary federal approvals. The decision is a major win for Gov. Kathy Hochul and the Metropolitan Transit Authority, which sued after Transportation Secretary Sean Duffy ordered the program halted and Trump declared it "dead" on social media. The ruling means the toll, in place since Jan. 5, 2025, continues: most drivers pay $9 to enter Manhattan below 60th Street during peak hours, with higher rates for trucks and steep overnight discounts.

Other lawsuits, including from New Jersey and a trucking group, are still pending but are not expected to derail it, legal experts say. The program has already cut traffic into the zone by about 27 million vehicles in its first year and generated $562 million after expenses, helping underwrite more than $15 billion in transit upgrades. The administration can appeal to the Second Circuit. The Department of Transportation said it is reviewing its options, including appealing, the AP reports.