This article originally appeared on Inside Climate News, a nonprofit, non-partisan news organization that covers climate, energy and the environment. Sign up for their newsletter here.

A United States federal judge ruled last week that the Trump administration’s efforts to shut down New York’s congestion pricing program are unlawful.

U.S. District Judge Lewis Liman, an appointee of President Donald Trump, handed down the decision. Liman also granted an injunction in May that allowed the congestion pricing to continue while the lawsuit played out in court.

The congestion-pricing program charges drivers a fee to enter New York City’s central business zone—all of Manhattan at or below 60th Street. Since it began, air quality has improved across NYC and in nearby New Jersey, research has shown. The program has also drawn multiple lawsuits.

The legal battle settled last Tuesday began in February 2025, when U.S. Transportation Secretary Sean Duffy sent a letter to New York Gov. Kathy Hochul, revoking federal approval of the program.

In a statement at the time, Duffy argued that the program was “a slap in the face to working-class Americans and small business owners.” The toll for an average passenger vehicle is $9 during peak hours, and large trucks can pay up to $21.60. 

The state-run Metropolitan Transportation Authority, along with other state agencies and advocacy groups including Sierra Club and Riders Alliance, pushed back in court, arguing that the Trump administration’s legal grounds for termination were “arbitrary and capricious.”

Dror Ladin, a senior attorney at Earthjustice—the law firm that represented Sierra Club and Riders Alliance in the case—said: “The Trump administration has basically asserted a right to just hack through any agreements it doesn’t like.”

He added, “This is an example of the court standing up and saying, ‘No, that’s not how this democratic process works.” 

During his 2024 presidential campaign, Trump vowed to end congestion pricing and has criticized it since he took office.

In response to questions from Inside Climate News, a spokesperson for the U.S. Department of Transportation wrote in an email that they “disagree with the court’s ruling.” 

“These Green New Scam policies have made federally funded roads inaccessible to commuters without providing a toll-free alternative,” the spokesperson said. “We are reviewing all legal options—including an appeal—with the Justice Department.”

In a statement, Hochul called congestion pricing “a once-in-a-lifetime success story,” and vowed that the program was “here to stay.” Initially, the governor was a reluctant supporter, pausing its implementation in 2024, several weeks before it was supposed to go into effect, to “avoid added burdens to working- and middle-class families.”

Late that year, Hochul reversed course and implemented the program with lower tolls. The state recently celebrated one full year with the program and touted the benefits—like less traffic, faster buses and better air quality. 

One study found that the program’s implementation was associated with a 22% drop in fine particulate matter—emitted by gasoline- and diesel-powered vehicles as they move through the city—on Manhattan blocks below 60th Street.

Among the most harmful air pollutants, fine particulate matter is a nasty brew of chemicals and heavy metals that can cause health impacts ranging from childhood asthma to cancer and heart disease. According to city data, long-term exposure contributes to an estimated 2,000 premature deaths a year in New York City, or 1 in 25 deaths there.

Congestion pricing reduces the number of cars entering downtown Manhattan, one of the city’s busiest areas, and redirects funds to the state-run agency that oversees mass transit, the Metropolitan Transportation Authority, which has long struggled financially. 

The tolls will help fund improvements to mass transit—some of which will further reduce the emission of greenhouse gases and harmful pollutants. A January report from the Metropolitan Transportation Authority said the program would help it purchase 460 electric buses. 

A report by the New York City Environmental Justice Alliance, an organization that advocates for communities burdened by environmental problems, found that 75% of New York City bus depots were located in communities of color. 

“The decision by the judge clearly shows that congestion pricing is legal,” said Kevin Garcia, the senior transportation planner for the alliance, which has long supported the program. “This means that our communities are guaranteed the system-wide improvements that they deserve and have long been deprived of for decades.”

Last April, a memo written by the federal government’s lawyers, which detailed the weaknesses of the administration’s case, was accidentally inserted into court documents. Originally reported by Streetsblog, the memo said that there was “considerable litigation risk” in defending the arguments that the transportation secretary made in his February 2025 letter.