Federal Court Restores New York City Congestion Toll, Clearing Way for $9 Lower Manhattan Entry Fee
New York City’s $9 congestion pricing toll for automobiles entering Lower Manhattan was upheld by a federal judge, giving state officials and the MTA a huge legal victory. Federal transportation regulators tried to revoke approvals, but the ruling allowed the scheme to continue.
March 3, U.S. District Court Judge Lewis Liman vacated Transportation Secretary Sean Duffy’s 2024 federal approval revocation proceedings in a thorough 149-page ruling. Prior approvals allowed congestion pricing to start on January 5, 2025.
Judge Liman ruled that the Transportation Secretary’s termination of the agreement was “arbitrary and capricious” and illegal. The judge restored two federal agreements that approved the tolling proposal by vacating the February and April 2025 Department of Transportation letters.
Congestion pricing charges most automobiles $9 to enter Manhattan south of 60th Street. It was established by a 2019 New York state statute to alleviate traffic and fund public transportation investments. Under the federal Value Pricing Pilot Program, certain communities can try gridlock-reducing tolling alternatives.
Secretary Duffy rescinded a November 2024 agreement to allow congestion pricing in a letter on February 19, 2025, starting the legal conflict. He threatened to withhold federal cash for state road repairs if the toll remained in April. In May 2025, Judge Liman halted federal action while the Metropolitan Transportation Authority contested that threat in court.
The judge ruled in his recent order that the U.S. Department of Transportation could not cancel the pilot program agreement because it no longer met agency policy criteria. He prevented the federal government from reversing congestion pricing authorization from the previous administration.
Congestion pricing was a success in its first year, according to New York Governor Kathy Hochul. Traffic in the congested zone has fallen 12%, say state officials. The Lincoln and Holland tunnels are faster, and the scheme has raised $500 million for the MTA’s capital plan. First signs of reduced bottleneck include cleaner air and safer roadways, say state leaders.
Janno Lieber, MTA Chair and CEO, has defended the toll as necessary for long-term transit upgrades. The revenue will fund major transportation upgrading projects in New York City.
The decision has detractors. U.S. Department of Transportation spokesperson: The department disagrees with the court’s finding and is considering an appeal. According to federal officials, the toll increases commuter costs, notably for working-class vehicles.
The economic impact on New Jersey residents who travel to Manhattan has also been raised by leaders. Representative Josh Gottheimer said the congestion charge burdens middle-class households already paying high taxes. He has opposed tolling and accused the MTA of seeking to fix long-standing financial issues at New Jersey drivers’ cost.
Mikie Sherrill inherited a lawsuit initiated by her predecessor against congestion pricing. Until Judge Liman rules, that lawsuit is on hold. While she urged that New Jersey explore its own congestion toll on New Yorkers commuting to important events, no such proposal has been implemented.
New Jersey’s lawsuit is delayed after the court’s ruling. Whether legal action will continue is unknown.
This federal court judgment ensures that Lower Manhattan congestion charging will remain under the current system. In the ongoing dispute over how big cities manage traffic, support public transit, and balance economic and environmental goals, the verdict is crucial.
Sources
U.S. District Court for the Southern District of New York
New York State Office of the Governor
Metropolitan Transportation Authority
U.S. Department of Transportation
