Federal Judge Blocks USDOT's Illegal Congestion Pricing Shutdown Bid

Key Details A federal judge ruled Tuesday that the U.S. Transportation Department's attempt to terminate New York City's congestion pricing program was unlawful. District Judge Lewis Liman found that Transportation Secretary Duffy's threat to withhold federal funding from New York's transit projects unless congestion pricing ended was illegal and arbitrary. Program Success Since launching in January 2025, the tolling program charges semi trucks over $21 and passenger vehicles $9 during peak Manhattan hours. In its first year, the program reduced vehicles entering congestion zones by 27 million, generated $550 million in revenue, and cut traffic times by up to 15 minutes. Why It Matters Judge Liman issued a temporary restraining order in May 2025 that already blocked federal funding withholding. The Tuesday ruling makes clear the administration's termination effort was unconstitutional overreach. For truckers, this stability means the tolling structure remains in place for planning purposes. The judge called the USDOT's decision-making "difficult to imagine more arbitrary and capricious" than what occurred here, setting strong precedent against federal interference with state transportation initiatives.