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NEW YORK – A federal judge upheld New York’s congestion pricing after the Trump administration tried ending the traffic toll program.

On March 3, U.S. Judge Lewis J. Liman of the Southern District of New York sided with New York officials who sued federal transportation officials after seeking to terminate congestion pricing, first launched in early 2025.

Congestion pricing aims to reduce traffic in Manhattan’s central business district by imposing tolls to disincentivize driving and encourage more public transit options, such as subways and buses. Funds from the program help pay for the transit system.

The ruling dealt a blow to President Donald Trump, a Queens native, and conservative allies in New York City suburbs who have tried to end congestion pricing early in his second term. Officials said congestion pricing lacked statutory authority for the Federal Highway Administration to enter into an agreement with state officials to enact the program at the federal level.

In a 149-page ruling, Liman, a Trump appointee, wrote that Transportation Secretary Sean Duffy’s decision to end the program was “arbitrary and capricious on the basis that the policy rationales were post hoc rationalizations which were themselves arbitrary and capricious.” Discussions of the program dated back to 2019, including with meetings and compromises to establish congestion pricing, Liman wrote.

In an email, Danna Almeida, a Department of Transportation spokeswoman, said the department was reviewing legal options, including appealing the decision, with the Justice Department. Congestion pricing has made federally funded roads inaccessible for commuters without a toll-free alternative, she said.

“The Trump Administration will not stop fighting to make everyday life more affordable for American families,” she said.

The White House declined to comment, referring questions to the Department of Transportation.

In February 2025, Trump declared on Truth Social, “CONGESTION PRICING IS DEAD,” when his Department of Transportation moved to terminate the program through administrative cuts to funding. Duffy had said congestion pricing was a “slap in the face to working-class Americans and small business owners” who were unfairly forced to pay for the transit system.

Data has shown drops in traffic and reduced pollutants in the lower portion of Manhattan where congestion pricing is in place, which is enforced by electronic cameras that read license plates. In the first year since congestion pricing took effect on Jan. 5, 2025, state officials said that toll revenues surpassed over $550 million, surpassing projections to fund repairs on the transit system, as well as to expand the city’s subway.

New York Gov. Kathy Hochul, a Democrat who has overseen congestion pricing’s implementation, including delaying its start, said congestion pricing is a “once-in-a-lifetime success story.”

“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” Hochul said in a statement. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”

In late May, Liman issued a preliminary injunction blocking the administration from ending the program. In his latest opinion, Liman said the court reached the same conclusions.

The ruling doesn’t permanently block the administration from trying to end congestion pricing, Liman said. But he left open the door for New York officials to seek a remedy if they believed the administration violated the court ruling.

Eduardo Cuevas is based in New York City. Reach him by email at emcuevas1@usatoday.com or on Signal at emcuevas.01.