Judge backs MTA congestion pricing in New York court ruling

Judge backs MTA congestion pricing in a legal clash between the Metropolitan Transportation Authority and the U.S. Department of Transportation. U.S. District Judge Lewis Liman of the Southern District of New York ruled yesterday that USDOT’s push to end the program is illegal.

Judge backs MTA congestion pricing: the ruling and the dispute

Liman’s decision, detailed in a 149-page opinion, found USDOT’s actions were unlawful, according to a Reuters report. Meanwhile, USDOT told the outlet it disagreed with the ruling and said it is reviewing legal options.

In addition, the case tracks earlier court action tied to federal highway funding. In May 2025, Liman issued a temporary block on USDOT and the Trump administration’s attempts to withhold federal highway funding in New York over the MTA plan, which charges vehicle drivers tolls for traveling in certain parts of New York City during high-congestion times, as previously covered by Railway Supply.

How the VPPP exception enabled New York City congestion pricing?

Under federal law, roads built using federal funding cannot charge tolls. The MTA program proceeded after the Biden administration approved a value pricing pilot program (VPPP) in November 2024, creating an exception.

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Separately, the agency then implemented the program in January 2025. It charges tolls to drivers entering New York City’s central business district.

In February 2025, U.S. Secretary of Transportation Sean Duffy under the new Trump administration informed Gov. Kathy Hochul and the MTA that he was terminating the VPPP, arguing it was an illegal tolling program. At the same time, in April 2025, Duffy issued a letter stating the Federal Highway Administration could halt federal funding for state highway projects if the congestion program continued.

What leaders said and where MTA congestion pricing revenue goes?

Hochul and the MTA sued in response and have kept the congestion pricing program in place. In a prepared statement yesterday, Hochul said: “In its first year, congestion pricing has yielded huge benefits: reduced gridlock, faster trips, safer streets and cleaner air, all while unlocking critical funding for mass transit upgrades,” and added: “Congestion pricing is legal, it works, and it is here to stay.”

Still, the MTA uses the proceeds from the congestion pricing program to fund capital improvements for New York City subways, buses and commuter railroads.

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