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Norms Impact

Congestion Pricing Wins in Court After Lengthy Battle With Trump

A federal judge halted an illegal bid to kill congestion pricing after federal officials threatened to withhold funding and approvals—using federal power to coerce state policy outside lawful channels.

Judiciary

Mar 3, 2026

Sources

Summary

A federal judge ruled the federal government’s attempt to end New York’s congestion pricing toll was illegal. The decision blocks an effort by the Trump administration to use federal approval and funding leverage to force a state to abandon a lawful transportation program. For now, New York’s first-in-the-nation traffic reduction plan remains in effect while other legal challenges continue.

Reality Check

Federal leverage that conditions approvals and funding on political compliance weakens the guardrails that separate lawful oversight from coercion. When executive officials threaten to cut off unrelated infrastructure support to force a state to cancel a program, we normalize governance by ultimatum rather than by statute and accountable process. That precedent concentrates power in the executive branch by turning routine federal administration into a tool for punishment and control, degrading the rule-bound expectations that keep intergovernmental authority from becoming extortionate.

Detail

<p>On Tuesday, Judge Lewis J. Liman of the Federal District Court in Manhattan issued a 149-page decision holding that the federal government’s attempt to end New York’s congestion pricing toll was illegal.</p><p>The ruling follows more than a year of efforts by the Trump administration to terminate the program. Gov. Kathy Hochul defended the toll plan as the White House argued it would harm the region’s economy, but did not offer evidence for that claim.</p><p>Months earlier, Judge Liman granted temporary protection to the toll program after Transportation Secretary Sean Duffy warned that the federal government would withhold approval and funding for a range of highway and transit projects in New York if congestion pricing was not canceled.</p><p>Other legal challenges to the program remain pending.</p>