United States of America

Judge Rules Federal Bid to End NYC Congestion Toll Illegal

Does this ruling protect a proven success or enable an illegal scheme shortchanging drivers?

Published MAR 4

Judge Rules Federal Bid to End NYC Congestion Toll Illegal

Story

Above: Traffic on an Ed Koch Queensboro Bridge off-ramp in New York on Jan. 6. Image credit: Michael Nagle/Bloomberg/Getty Images

The Facts

U.S. District Judge Lewis J. Liman ruled on Tuesday that the federal government's attempt to end New York's congestion toll was illegal, following a protracted court battle between the state and the White House.
Newsweek
The New York Times
The Wall Street Journal
New York's congestion pricing program took effect on Jan. 5, 2025, charging passenger and small commercial vehicles $9 to enter Manhattan below 60th Street during peak hours. Trucks, by contrast, are tolled at a higher rate, up to $21.60, whenever they enter the zone.
NYC
Metropolitan Transportation Authority
The following month, Transport Secretary Sean Duffy sent a letter to Gov. Kathy Hochul, rescinding a December 2024 agreement for the Value Pricing Pilot Program (VPPP). The decision would have ended the city's tolling operations, prompting the Metropolitan Transportation Authority to file a lawsuit.
United States Department of Transportation
Court Listener
Liman issued a temporary restraining order in May 2025 to protect the tolling scheme from Washington's threats after the plaintiffs filed an amended complaint following a letter sent by Duffy to Hochul in April outlining certain actions the administration would take if New York failed to comply with its demands.
Court Listener
United States Department of Transportation
Court Listener
In his 149-page decision on Tuesday, Liman judged that Duffy's conduct was "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law," allowing Liman to vacate the transport secretary's letters and the actions taken through them under the Administrative Procedure Act.
Court Listener
The judge did not, however, grant a permanent injunction against the defendants, claiming the plaintiffs failed to make a "sufficient showing," nor injunctive relief against the administration withdrawing federal funds without constitutional or statutory authority, as it would be "overbroad."
Court Listener

Sources Split

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The Spin

Narrative A

This ruling is a massive win for New York. Since its implementation, congestion pricing has consistently delivered across the board, with New Yorkers enjoying less gridlock, faster commutes, safer streets and cleaner air. With the federal government's meddling now proven to be illegal, the city can rest assured that this success will stay in place.

Letitia James on X

Governor Kathy Hochul (.gov)

Narrative B

Despite what Liman claims, New York's congestion charge is unquestionably illegal, with the Biden administration having wrongly approved it. Worse, it exceeds congressional authority and breaks faith with taxpayers, who the toll forces to pay even more of their hard-earned cash into a system they have already funded through their taxes.

United States Department of Transportation