USDOT’s attempt to end NYC congestion pricing was illegal, judge rules

A judge ruled the US Transportation Department’s attempt to end New York City’s congestion pricing program was illegal on Tuesday. 

Back in May 2025, U.S. District Judge Lewis Liman issued a temporary retraining order preventing the federal government from withholding funding from New York over congestion tolling – which places a toll of more than $21 on semi trucks and $9 on passenger vehicles passing through Manhattan during peak hours. The restraining order went against the “terminated approval” from the USDOT for the tolling plan. 

The tolling has been in effect since January 2025, but on Tuesday, March 3rd, 2026 District Judge Liman ruled that the administration’s effort to terminate the program last spring was illegal. Liman also ruled that Transportation Secretary Duffy’s threat to withhold funding from New York transportation projects if congestion pricing was not ended was illegal.

According to Reuters, in just one year, the congestion pricing program has resulted in 27 million fewer vehicles entering the congestion zones, earned $550 million for the city, and cut traffic times by as much as 15 minutes. 

“It is difficult to imagine more arbitrary and capricious decision-making ​than that at issue here,” Liman said in his final opinion.