On Tuesday, March 3, a federal judge ruled that the U.S. Transportation Secretary Sean Duffy did not have the authority to terminate New York’s congestion pricing program.
In a 149-page ruling issued on Tuesday, Judge Lewis Liman wrote that the U.S. Department of Transportation’s legal authority to approve and establish tolling projects “does not include” the unilateral power of the Transportation Secretary to terminate such projects. Therefore, the judge ruled that the Metropolitan Transportation Authority (MTA) has the power to continue collecting congestion fees.
New York City began collecting congestion fees in the area south of 60th Street in Manhattan on January 5 last year after going through a comprehensive legislative process. The legislation was part of the “value pricing pilot program” established by Congress to authorize tolls based on congestion levels.
In February 2025, Secretary Duffy revoked approval for the program, citing concerns about legal authorization and the revenue motives of the program. The Secretary claimed that the project was not authorized under the value pricing program agreement and its main purpose was to increase financial revenue rather than alleviate traffic congestion. In two letters, Duffy threatened to withhold federal funds for certain Manhattan highway projects if Governor Hochu did not shut down congestion fee cameras, and even went as far as potentially withholding federal funds for the entire state of New York.
The judge believed that the Secretary’s decisions were arbitrary and capricious due to reliance on post hoc rationalizations and misunderstandings of statutory authorizations. The court rescinded the letters from February 19 and April 21, restoring the agreement and approvals. The court issued a declaratory judgment declaring the Secretary’s termination actions as “unlawful.”
Ultimately, the court ruled in favor of the plaintiffs’ lawsuit and no further institutional review was necessary.
Governor Hochu released a statement celebrating the “victory once again.”
“Congestion pricing has been an unprecedented success story, bringing significant benefits in its first year: reduced traffic congestion, quicker travel times, safer streets, cleaner air, and crucial funds released for public transportation upgrades,” the Governor wrote. “Congestion pricing is legal, effective, and will continue to be implemented. The surveillance cameras will remain active.”
The Department of Transportation has not publicly responded to the verdict.