Trump Administration Fails to Stop NYC Congestion Pricing

By Y.M. Lowy

After months of back and forth, congestion pricing in New York City is officially moving forward.

A federal judge has ruled that the tolling program can continue, rejecting an effort by the Trump administration to shut it down. The decision marks a major turning point in a debate that has been in and out of the headlines for more than a year.

Congestion pricing, which began on January 5, 2025, charges most drivers a fee to enter Manhattan below 60th Street. During peak hours, drivers using E-ZPass pay $9. The goal is to reduce traffic and raise money for public transportation improvements.

In February 2025, U.S. Transportation Secretary Sean Duffy sent a letter to Governor Kathy Hochul saying the federal government was revoking its approval of the program. The Metropolitan Transportation Authority, known as the MTA, quickly filed a lawsuit, arguing that the federal government could not simply withdraw permission after the program had already started.

On Tuesday, Judge Lewis Liman agreed. He ruled that the transportation secretary could not unilaterally cancel the approval and called the termination unlawful. That means congestion pricing remains in effect.

Governor Hochul welcomed the ruling, calling it a clear victory for New York and saying the program is legal and here to stay.

The federal government responded by saying it disagrees with the decision and is reviewing its legal options, including a possible appeal.