A federal judge in Manhattan has ruled that the Trump administration’s efforts to stop New York City’s congestion pricing toll program were unlawful. The decision by U.S. District Court Judge Lewis Liman allows the tolls, which began under the Biden administration’s approvals, to remain in place. Separate lawsuits from other opponents, including the State of New Jersey, are still pending.
New York Governor Kathy Hochul responded to the ruling with a statement: “The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly. Congestion pricing is legal; it works, and it is here to stay. The cameras are staying on.”
The Metropolitan Transit Authority (MTA) launched the congestion pricing program on January 5, 2025, making it the first such initiative in the country aimed at reducing traffic congestion. When the Trump administration took office later that month, U.S. Transportation Secretary Sean Duffy ordered New York to stop the program or risk losing federal funding.
Judge Liman previously issued a temporary stay that kept traffic cameras operating and prevented federal action against New York while litigation was ongoing. His final ruling represents a win for the MTA, which reported collecting $518 million in tolls during the first eleven months of 2025 and said traffic had dropped by 11%.
The congestion pricing system charges most drivers $9 to enter Manhattan south of 60th Street during peak daytime hours, with trucks paying $21.60 per entry during those times. Lower rates apply during non-peak evening hours.
Opposition from New Jersey centers on concerns about financial burdens for commuters and businesses delivering goods into New York City. Former Governor Phil Murphy also expressed worries about increased traffic and pollution near bridges and tunnels as drivers try to avoid tolls. New Jersey argued that environmental reviews conducted under the Biden administration did not fully address impacts on its residents and businesses.
While Judge Liman’s decision does not resolve New Jersey’s legal challenge, it strengthens New York’s case and could make it more difficult for opponents to prevail.
The New Jersey Business and Industry Association (NJBIA), which serves as the nation’s largest statewide employer association representing employers across various sectors, has been vocal about issues affecting Garden State businesses regarding policies like congestion pricing. NJBIA supports private-sector employers throughout New Jersey by advancing competitive excellence and financial success for its members while providing essential information and services. The association also facilitates partnerships among businesses, government entities, and academic institutions and offers advocacy as well as cost-saving benefits. Michele Siekerka serves as president and CEO of NJBIA.
