NYC Congestion Pricing Plan Wins Federal Lawsuit

What happened: A federal judge March 3 ruled the U.S. Department of Transportation (DOT) is unable to rescind approval of New York City’s congestion pricing program. The tolling effort, approved as a pilot program by the Biden administration, charges drivers entering specific areas of Manhattan with a $9 base fee during peak hours.

Why it matters: The revenue is intended to support a $15 billion bond for the Metropolitan Transit Authority’s (MTA) transit capital plan. Congestion pricing raised $562 million in its first year after expenses, exceeding initial estimates.

A little background… The dispute began February 2025 when the Federal Highway Administration attempted to halt the state program. U.S. Transportation Secretary Sean Duffy, at the time, noted congestion pricing left visitors and workers no free path to access the city, and that revenue generated was designated entirely for transit and not the roads that were being taxed. He also cited concerns the program would negatively impact New Jersey residents. In response, the MTA and other plaintiffs filed a lawsuit arguing that U.S. DOT’s termination of the program was unlawful and asked the court to temporarily block the action while the case proceeded. In May 2025, the judge granted the MTA’s request, allowing the program to continue operating while the litigation moved forward.

What’s next: While the program remains in effect, it still faces other lawsuits, and the possibility of an appeal by the Trump administration. The federal government may also attempt to pursue a new termination under different legal authority. ARTBA’s Transportation Investment Advocacy Center (TIAC) is tracking developments in real time. Subscribe to the Center’s blog for the latest updates.