U.S. District Judge Lewis Liman ruled that the Trump administration acted unlawfully in trying to kill the $9 Manhattan toll
A Landmark Ruling for Transit and Democracy
A federal judge handed down one of the most significant transportation rulings in years on March 3, 2026, upholding New York City’s congestion pricing program and declaring that the Trump administration acted unlawfully when it tried to terminate it. U.S. District Judge Lewis Liman, who was himself appointed to the federal bench by President Donald Trump in 2019, sided decisively with the Metropolitan Transportation Authority and the state of New York in a 149-page opinion.
What the Judge Found
Liman ruled that Transportation Secretary Sean Duffy’s February 2025 letter rescinding federal approval for the congestion toll was “arbitrary and capricious, an abuse of discretion, and not in accordance with law.” The judge found that the authority to approve tolling programs under the federal Value Pricing Pilot Program “does not carry with it the inherent unilateral ability” of a secretary to terminate a project established under that program, whether by himself or a predecessor. In plain terms: the Trump administration did not have the legal power to do what it did.
The Background
New York’s congestion pricing program charges most vehicles entering Manhattan south of 60th Street a toll of roughly $9, in addition to any bridge or tunnel tolls already paid. It was authorized by the state legislature, signed into law by the governor, and received the necessary federal approvals before launching in January 2025. Since then, approximately 27 million fewer vehicles have entered the central business district, according to MTA data. Sales tax revenues, office leases and foot traffic in the zone have all increased. “Traffic is down, business is up,” said MTA CEO Janno Lieber. Duffy had called the toll “a slap in the face to working-class Americans and small business owners” and threatened to withhold all federal transportation funding from New York if the toll was not discontinued. Liman had temporarily blocked those threats from taking effect while the case proceeded.
Reactions
Governor Hochul declared victory immediately. “The cameras are staying on,” she wrote on social media. She added: “Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly.” The U.S. Department of Transportation said it disagreed and was reviewing all legal options, including an appeal. Mayor Mamdani had previously announced the continuation of congestion pricing on January 5, the program’s first anniversary.
Broader Implications
The ruling is the latest chapter in a year-long legal battle that has seen challenges from New Jersey’s governor, teachers’ unions, trucking groups and suburban leaders, all of which were dismissed. Earthjustice, which represented the Riders Alliance and Sierra Club as intervenors in the case, called the ruling “a huge win for New Yorkers and for our democracy.” The organization noted that Trump had publicly declared “CONGESTION PRICING IS DEAD … LONG LIVE THE KING” in a February 2025 social media post, a declaration the court has now flatly rejected. Streetsblog NYC, which has tracked the program closely, pointed out that the ruling affirms a basic principle: that the program “was the product of a democratic process” and that “the democratic process worked,” in Liman’s own words. An appeal to the Second Circuit Court of Appeals is expected, meaning this legal battle is not yet over.
