MTA and Trump administration face off in court over New York congestion pricing
A federal judge heard arguments Wednesday on whether the Transportation Secretary had authority to terminate the $9 toll program for Manhattan drivers.
January 29, 2026
The Metropolitan Transportation Authority and the Trump administration returned to federal court Wednesday to argue over the fate of New York City's congestion pricing program, with a judge hearing three hours of legal arguments on whether the U.S. Transportation Secretary had the power to terminate the tolls.
Judge Lewis J. Liman presided over the hearing in Manhattan federal court, where representatives from both sides presented their cases. The judge did not issue a ruling Wednesday and said he would deliver a written decision at a later date. The tolls remain in place while the legal battle continues.
The congestion pricing program charges drivers $9 to enter Manhattan below 60th Street. The tolls launched in January 2025 and are scheduled to increase to $15 by 2031.
U.S. Transportation Secretary Sean Duffy sent a letter last February directing the state and MTA to end congestion pricing by the end of March, threatening to withhold federal funding for other transportation projects in New York if they did not comply. The MTA challenged this directive in court.
In May, Judge Liman issued a temporary injunction that blocked the White House's effort to end the program, allowing the tolls to continue operating while the legal case proceeded.
During Wednesday's hearing, the judge questioned Trump administration lawyers about the government's continued opposition to the congestion pricing program. President Trump has claimed, without offering evidence, that the program will hurt New York's economy. The administration has threatened to withhold federal approval and funding from various transportation projects in the state.
MTA Chair and CEO Janno Lieber argued that the Transportation Secretary lacked the authority to rescind the congestion pricing agreement. "This case is what Gov. Hochul was talking about. Do we have a democracy, or do we have a king? The government's position is they can rescind any agreement, any approval at any time if the president or the secretary of transportation wants. That's a scary position. That means the government's commitments will be worthless," Lieber said.
The two sides submitted dense legal arguments during the hearing. Additional court filings from both the MTA and the Trump administration are due on February 6.