Trump Administration Appeals Court Ruling to Block New York Congestion Pricing Program
Why It Matters
The future of New York City’s congestion pricing program — and its financial impact on New Jersey commuters and transit infrastructure — hinges on a federal appeals process that could reshape tolling policy across the northeastern United States. The Trump administration’s renewed legal challenge puts billions in planned transit funding at risk while raising broader questions about federal authority over state-run tolling programs.
New Jersey finds itself at the center of the dispute, both as a state whose residents cross into Manhattan daily and as a party to its own separate lawsuit against the program — one that may be moving toward a negotiated settlement under new leadership.
What Happened
The Trump administration has filed an appeal of a federal court ruling that blocked its effort to terminate New York’s congestion pricing program, which charges drivers $9 per entry into Manhattan’s central business district south of 60th Street.
U.S. Transportation Secretary Sean Duffy had previously moved to cancel the program unilaterally, arguing that state officials had exceeded their authority. U.S. District Court Judge Lewis Liman rejected that action in March, ruling that Duffy and the Department of Transportation had acted “arbitrarily and capriciously” and that the administration could not void the value pricing pilot program agreement except under that agreement’s own terms.
The administration’s appeal revives its legal effort to end the program. In an unsigned statement, the Department of Transportation said: “Once again, working-class Americans are being sidelined under Democrats’ policies, which impose a massive tax on every New Yorker. These Green New Scam policies have made federally funded roads inaccessible to commuters without providing a toll-free alternative.”
Metropolitan Transportation Authority policy chief John McCarthy responded sharply to the appeal. “Congestion pricing is working — fewer cars, less pollution, faster commutes,” McCarthy said in remarks reported by the New Jersey Monitor. “Secretary Duffy has already lost in court, and if he wants to see us there again, let’s go.”
By the Numbers
- $9 — per-entry toll charged to drivers entering Manhattan’s central business district
- $15 billion — target capital funding for the Metropolitan Transportation Authority tied to congestion pricing revenue
- $550 million — net revenue generated by the program in its first year, according to New York Gov. Kathy Hochul
- June 10 — deadline set by a federal judge for New York and New Jersey to continue settlement negotiations in the separate state-level lawsuit
- May 13 — date by which the first update on New York-New Jersey settlement talks is due
Zoom Out
New York’s congestion pricing program is the first of its kind in the United States, modeled loosely on systems operating in London, Stockholm, and Singapore. Its implementation has been closely watched by transit agencies and state transportation departments nationwide as a potential model for reducing urban traffic congestion and generating dedicated transit revenue.
A Regional Plan Association study released in June 2025 found the program had reduced traffic both within the tolling district and in surrounding regions — data that New York officials have cited in defense of the program. The legal battle over federal authority to revoke a congressionally authorized tolling pilot agreement could set precedent for how similar programs are structured and protected in other states.
The dispute also intersects with broader federal transportation and infrastructure debates currently unfolding in Washington. Congress has been working through a series of must-pass spending and infrastructure measures that could affect how federal transportation agreements are interpreted and enforced going forward.
New Jersey’s Evolving Position
New Jersey filed its own lawsuit against congestion pricing as far back as 2023 under then-Gov. Phil Murphy, arguing that some federal approvals for the program were improper and that the state would face increased traffic and pollution as a result. That legal posture appears to be shifting under new Gov. Mikie Sherrill.
Attorneys for New York and New Jersey held a settlement conference on April 24. A federal judge subsequently agreed to pause the New Jersey suit until June 10 to allow negotiations to continue. Spokespeople for Sherrill declined to comment on the federal government’s appeal or the current status of the state lawsuit, as New Jersey has also been focused on improving financial transparency measures in recent months.
What’s Next
The Trump administration’s appeal will proceed through the federal appellate courts, with no immediate timeline for a ruling. In the parallel New Jersey case, the next update on settlement negotiations between New York and New Jersey is due May 13, with the pause on that litigation running through June 10. Both proceedings will shape whether the $9 toll structure and the MTA’s $15 billion capital funding plan remain intact.