New York City’s congestion pricing programme will remain in place after a federal judge ruled that the Trump administration’s effort to terminate it was illegal, handing a major victory to the Metropolitan Transportation Authority and its $15 billion transit modernisation plan.
U.S. District Judge Lewis Liman found on March 3 that Transportation Secretary Sean Duffy’s move to rescind federal approval for the program was ‘arbitrary and capricious, an abuse of discretion and not in accordance with the law.’
In December we reported on new research which found that in its first six months, the congestion pricing scheme had reduced air pollution by 22% in Manhattan’s toll zone, while improving air quality across the entire metropolitan region.
The programme, which charges most motorists $9 to enter the zone below 60th Street, went into effect on 5th January 2025. It was approved the previous year by Biden administration Transportation Secretary Pete Buttigieg. Duffy’s attempt to revoke that approval just over a month later was swiftly challenged by the MTA in court.
The ruling means that America’s first congestion pricing scheme can continue operating indefinitely, though the legal fight may not be over. The Trump administration could appeal to the U.S. Court of Appeals for the Second Circuit.
The decision secures a vital revenue stream for the MTA, which is relying on toll income to help finance $15 billion in capital improvements. MTA financial documents show the scheme brought in $562 million in revenue last year.
Data shows the programme is also achieving its traffic reduction goals. Between January and October, vehicle entries into the zone fell by 11%, with 72,600 fewer cars entering daily on average compared to pre-toll periods. Vehicle miles traveled dropped by 7.1%, and traffic flow within the zone improved by 4.6%.
Public buses operating below 60th Street are running faster, with average weekday speeds higher every month last year compared with 2024.
Judge Liman declined to issue an order blocking possible future attempts to stymie the program, leaving the door open for further legal challenges. But for now, congestion pricing remains firmly in place.
Dror Ladin, Senior Attorney at Earthjustice said: ‘This a huge win for New Yorkers and for our democracy. President Trump declared himself a king and decreed that congestion pricing was dead. But the court confirmed today that Trump has no power to override the democratic process that brought us Congestion Pricing. It remains very much alive, and is delivering great results for our air, our streets, our public transit, and our climate.’
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