NEW YORK (VINnews) — A federal judge ruled Tuesday that the Trump administration acted unlawfully in attempting to terminate New York’s congestion pricing program, delivering a victory to state officials and transit advocates who sued to keep the tolls in place.

U.S. District Judge Lewis J. Liman found that Transportation Secretary Sean Duffy did not have the authority to unilaterally withdraw from the federal agreement that allows the tolling system to operate.

In a written opinion, Liman said the secretary’s actions were “arbitrary and capricious” and not in accordance with the law. The ruling blocks enforcement of letters sent in 2025 to Gov. Kathy Hochul declaring the program terminated and threatening to withhold federal funding.

New York and the Metropolitan Transportation Authority filed suit after the U.S. Department of Transportation sought to end the agreement underpinning the congestion pricing plan. The judge had previously issued a temporary restraining order allowing the tolling system to remain in effect while the case moved forward.

Hochul said in a statement that the decision confirms the program’s legality and that the tolls will continue.

Under the plan, most drivers entering Manhattan south of 60th Street pay $9. The MTA has said the revenue supports transit upgrades and that traffic in the congestion zone has declined since the tolls took effect. The agency also reported that early revenue collections exceeded initial projections.

The U.S. Department of Transportation did not immediately comment on the ruling.

The decision limits the administration’s ability to halt the program without further legal action and marks a significant development in the dispute between federal and state officials over transportation policy.