A federal judge has ruled that New York City’s congestion pricing program can continue, rejecting the Trump administration’s attempt to shut it down and marking another major development in the ongoing legal fight over the controversial tolls.

In a March 3 decision, U.S. District Judge Lewis J. Liman ruled that the federal government acted unlawfully when it tried to revoke approval for the program after it had already been authorized.

The judge said the transportation secretary’s actions were “arbitrary and capricious” and not consistent with federal law.

The ruling keeps the congestion pricing program in place for now.

The program charges a toll for vehicles entering Manhattan south of 60th Street, with higher fees for commercial vehicles than for passenger cars. Passenger vehicles currently pay about $9 during peak hours, while trucks face significantly higher charges, depending on vehicle size.

The decision did not address the cost structure for trucks or other industry concerns about the program. The ruling was strictly about whether the federal government had the authority to withdraw approval of the plan after it had already been granted.

Judge Liman concluded that it did not.

Why Has Trump Been Trying to Kill NYC’s Congestion Pricing?

New York’s congestion pricing program launched in January 2025 after receiving federal approval under the Value Pricing Pilot Program. The goal is to reduce traffic in Manhattan, reducing congestion and pollution, while generating revenue for transit improvements.

Last year, the Trump administration attempted to terminate that approval and threatened to withhold federal transportation funding if the tolls continued.

President Trump declared on social media that he killed the program, adding, "long live the king."

At the time, Gov. Kathy Hochul responded, "New York hasn't labored under a king in over 250 years, and we sure as hell are not going to start now," reported CBS News.

In response to the Trump Administration’s efforts to end the program, New York’s Metropolitan Transportation Authority and other supporters sued, arguing the federal government could not simply cancel a previously approved project.

The judge agreed.

The Legal Fight Isn't Over

The court decision strengthens New York’s position, but it likely won’t end the legal battle.

The U.S. Department of Transportation could appeal the ruling or pursue other legal options.

Separate lawsuits challenging congestion pricing — including cases related to environmental reviews and the toll structure — are still moving through the courts, including one filed by the Trucking Association of New York.

Trucking groups that opposed the congestion pricing plan said the ruling means fleets will continue facing higher delivery costs in the nation’s largest freight market. Trucks already pay multiple bridge and tunnel tolls when entering the city, opponents note.

Why Trucking is Watching NYC

As Heavy Duty Trucking previously reported, the New York program, the first of its kind in the U.S., is being closely watched across the industry. Even though it only directly affects fleets operating in the city, congestion pricing is seen as a potential model that other urban areas could adopt.

For fleets serving New York City, however, at least for now, congestion pricing remains part of the cost of doing business in Manhattan.