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Federal Judge Rules USDOT Can’t Unilaterally End New York’s Congestion Pricing

The decision vacates Transportation Secretary Sean Duffy’s termination letters, keeping the tolling program in effect pending possible appeal.

Overview

  • U.S. District Judge Lewis Liman found the Department of Transportation lacked authority to rescind federal approval and deemed the attempted reversal arbitrary and capricious in a 149-page ruling.
  • The court set aside Duffy’s February 19 and April 21, 2025 letters that sought to terminate the program and threatened to withhold transportation funds.
  • New York’s congestion fee, launched in January 2025 for vehicles entering Manhattan south of 60th Street, carries a roughly $9 daytime base toll.
  • The MTA reported about $562 million in first-year revenue and cited measurable drops in traffic, air pollution and commute times within the zone.
  • A USDOT spokesperson said the department is reviewing legal options, including an appeal, as New York officials say tolling will continue under the ruling.