U.S. Judge Backs Congestion Pricing, Blocks Trump Administration’s Effort To Terminate Program

Updated: March 03, 2026 23:20

Image Source: The New York Times

A federal judge has ruled that the Trump administration acted unlawfully in its efforts to undo New York City’s Manhattan congestion pricing program, allowing the tolling system to continue. The decision preserves a key traffic and transit funding initiative after legal challenges over the revocation of federal approval.

A recent federal court decision has significant implications for New York City’s congestion pricing tolling initiative. Manhattan’s congestion pricing, designed to reduce traffic and fund transit improvements, was targeted by the Trump administration’s attempt to rescind federal approval. The judge’s ruling establishes that the administration’s actions were unlawful, keeping the program intact while legal proceedings continue.

Key Highlights

A U.S. federal judge ruled that efforts by the Trump administration to undo New York’s Manhattan congestion pricing program were unlawful, preventing the administration from acting on its revocation of federal approval.
The congestion pricing system, which charges vehicles to enter Manhattan’s core, was launched on January 5, 2025, to reduce traffic and generate revenue for the Metropolitan Transportation Authority’s transit infrastructure projects.
The Trump administration had attempted to rescind federal approvals granted during the prior administration, arguing that the program exceeded federal authorizations under the Value Pricing Pilot Program.
New York State and the MTA sued, contending that revoking approval was improper and that the pricing scheme was legal, leading the dispute to federal court.
The judge’s ruling halts the administration’s effort to revoke the program, meaning congestion pricing remains in place while the case proceeds.
Supporters of the program argue that it has reduced traffic, improved transit times, and raised funds for critical transportation improvements since its implementation.
Opponents, including the Trump administration, criticized congestion pricing as unfair to commuters and local businesses and argued for its termination.
The decision marks an important legal victory for New York as it defends the first-of-its-kind urban congestion pricing approach in the United States.

Sources: Reuters, MarketScreener

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