A federal judge ruled Tuesday that the federal government acted unlawfully in attempting to terminate New York’s congestion pricing program, delivering a significant legal win to the state and preserving, for now, the nation’s first traffic-reduction toll plan.

The 149-page opinion issued by Judge Lewis J. Liman of Federal District Court in Manhattan brings a temporary end to an extended clash between Gov. Kathy Hochul and the White House. The administration had sought for more than a year to dismantle the toll initiative, arguing—without presenting evidence—that it would damage the regional economy. Although other lawsuits related to the program are still pending, the ruling represents a major setback for federal efforts to shut it down.

The decision follows an earlier move by Judge Liman to shield the toll system from actions threatened by Transportation Secretary Sean Duffy. Duffy had warned that Washington could withhold approval and funding for various highway and transit projects in New York if the state did not scrap congestion pricing.

In his opinion, Judge Liman rejected the federal government’s assertion that it could revoke prior approval for the program and faulted officials for threatening New York’s transportation funding as leverage. He made clear that the administration’s attempt to rescind its earlier authorization overstepped legal bounds.

“It would be difficult to imagine a more definitive repudiation of contractual obligations by any party to any form of agreement than the repudiation and rescission set forth in the Feb. 19 letter,” he wrote on Tuesday, referring to the first demands issued by the federal government last year.

New York’s congestion pricing system, which aims to ease traffic and generate revenue for public transit upgrades, went into effect on Jan. 5, 2025. Under the program, most motorists pay $9 to enter Manhattan south of 60th Street during peak hours. Commercial trucks are charged more, up to $21.60 per entry. Overnight rates are reduced by 75 percent, bringing the fee for most vehicles down to $2.25.

Shortly after the tolls began, in February 2025, Secretary Duffy directed Governor Hochul to suspend the plan, arguing that it went beyond the authority granted under the federal program used to approve it. President Trump also weighed in publicly, declaring on social media that congestion pricing was finished and that New York had been “saved.” He shared an image of himself wearing a crown with the caption, “LONG LIVE THE KING.”

Governor Hochul, who had previously postponed the rollout of the tolls over economic considerations, resisted the federal pressure. The Metropolitan Transportation Authority, which oversees the program, quickly filed suit in federal court in Manhattan to prevent what it described as unlawful interference, maintaining that the toll plan had undergone extensive review and received proper authorization during the Biden administration.

Following the ruling, Hochul praised the court’s decision and pledged to continue defending the program against further challenges.

“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” she said. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”

Janno Lieber, chief executive of the M.T.A., also celebrated the outcome, framing it as a rebuke to Secretary Duffy, who has repeatedly criticized New York City’s transit system.

“Today — once again — Secretary Duffy failed and New York is winning.”

{Matzav.com}