Federal Judge Blocks Trump Administration's Manhattan Congestion Pricing Ban

U.S. District Judge Lewis Liman ruled on March 3, 2026, that the Trump administration acted unlawfully in its attempt to terminate Manhattan's congestion pricing program. The ruling blocked efforts by Transportation Secretary Sean Duffy to rescind federal approval for the Central Business District Tolling Program, which began on January 5, 2025. The program charges most passenger vehicles $9 to enter Manhattan south of 60th Street during peak hours to reduce gridlock and fund public transit.

Judge Liman characterized Secretary Duffy's actions as "arbitrary and capricious" and an "abuse of discretion," stating that an administrative agency cannot make decisions affecting the public based on momentary impulses. The judge specifically noted that the program was a product of a democratic process and highlighted the Metropolitan Transportation Authority's reliance on the revenue to back capital improvements and short-term debt.

Governor Kathy Hochul and MTA CEO Janno Lieber hailed the decision, citing a first-year success that generated over $550 million in revenue, reduced air pollution by 22%, and decreased vehicle volume by 27 million. Conversely, the U.S. Department of Transportation disagreed with the ruling, describing the policy as a "Green New Scam" and a tax on working-class Americans. The agency is currently reviewing legal options for an appeal with the Justice Department. While this federal challenge was dismissed, the program continues to face separate lawsuits from New Jersey and the Trucking Association of New York.