In a significant legal setback for the Trump administration, a federal judge has blocked efforts to starve New York’s groundbreaking congestion pricing program of federal funds. The program, aimed at unclogging Manhattan’s traffic and fueling a massive transit overhaul, now has a green light to keep rolling—at least for the moment.
U.S. District Judge Lewis Liman slammed the Transportation Department’s hardball tactics as “a game of chicken,” calling out the threat to withhold funding as a coercive gambit that goes too far. In his extensive ruling, Liman made clear that the feds can’t strong-arm New York into scrapping its initiative by dangling the threat of cutting crucial project approvals and money.
Since January, New York’s congestion charge—tolling most vehicles $9 during peak hours to enter the busiest part of Manhattan—has sliced traffic by nearly 10%, easing snarls that have long choked city streets. The revenue is earmarked for a $15 billion boost to the city’s subway and bus systems, which desperately need repair and modernization.
The Trump administration, after yanking federal approval in February, warned New York Governor Kathy Hochul to kill the program or risk losing environmental clearances and federal funds. Hochul refused, and the city and state immediately sued to block the move.
Liman’s decision not only preserves funding but underscores the state’s authority to chart its own path on transportation policy. Hochul hailed the ruling as a victory for local control and smart urban planning.
Meanwhile, Transportation Secretary Sean Duffy criticized the program as an unfair tax on everyday drivers and vowed to appeal the ruling. “You can tax people out of their cars, and you’ll get rid of congestion,” he said, acknowledging the program’s effectiveness but spotlighting the economic impact on commuters.
The legal battle is far from over, with further briefings and a final ruling expected by year-end. For now, New York’s ambitious experiment to tackle one of the nation’s worst traffic crises keeps cruising forward.
