A federal judge ruled on March 3 that the U.S. Department of Transportation (DOT) is unable to rescind approval of New York City’s congestion pricing program.
The tolling effort, approved as a pilot program by the Biden administration, charges drivers entering specific areas of Manhattan with a $9 base fee during peak hours and the potential for future increases. Drivers without E-Z Pass and commercial vehicles pay higher amounts, while overnight travelers pay 25 percent of the peak fee.
The revenue is intended to support a $15 billion bond for the Metropolitan Transit Authority’s (MTA) – the New York City’s public transportation administration – transit capital plan. Congestion pricing raised $562 million in its first year after expenses, exceeding initial estimates.
The dispute began in February 2025, when the Federal Highway Administration (FHWA) attempted to halt the state program. U.S. Transportation Secretary Sean Duffy, at the time, noted that congestion pricing left visitors and workers no free path to access the city, and that revenue generated was designated entirely for transit and not the roads that were being taxed. The Secretary also cited concerns that congestion pricing in New York City would negatively impact New Jersey residents and increase traffic in those communities. In response, the MTA and other plaintiffs filed a lawsuit arguing that U.S. DOT’s termination of the program was unlawful and asking the court to temporarily block the action while the case proceeded. In May 2025, the judge granted the MTA’s request, allowing the program to continue operating while the litigation moved forward.
While the program remains in effect, it still faces other lawsuits, and the possibility of an appeal by the Trump administration. The federal government may also attempt to pursue a new termination under different legal authority.