Judge Blocks Feds from Withholding
Funds from NYS over Congestion Tolls
NEW YORK—New York City, New York State and the Metropolitan Transportation Authority scored a critical legal victory yesterday, May 27, when a federal judge granted the MTA a temporary restraining order against the Trump administration’s plan to halt the city’s congestion pricing program.
The move effectively will keep congestion pricing tolls intact through at least June 9 by blocking the Trump administration from withholding funding for New York transportation projects if the program is not halted, according to observers.

In a letter sent to New York Gov. Kathy Hochul on April 21, U.S. Transportation Secretary Sean Duffy had warned that the DOT could implement “compliance actions” as early as May 28.
Judge Lewis J. Liman granted the MTA’s request for a temporary restraining order following oral arguments from both sides in federal court in Lower Manhattan on Tuesday. Judge Liman said that New York State “would suffer irreparable harm” without a restraining order against the Trump administration, The New York Times reported.
In his letter to the governor, Sec. Duffy had warned that the DOT could implement compliance measures. These include no further advance construction authorizations for projects within the borough of Manhattan, except for projects determined by FHWA to be essential for safety projects. Other policy action would be no further National Environmental Policy Act approvals for projects within the borough of Manhattan, except for safety projects, and no further approvals of Statewide Transportation Improvement Program amendments concerning New York Metropolitan Transportation Council TIP modifications.
He added that if New York’s non-compliance continues, the FHWA may consider imposing additional measures. Those could include “no further obligations of FHWA funds (both formula and competitive) for projects within New York City, except for safety projects; no further AC authorizations for projects within New York City, except for safety projects; and no further NEPA approvals for projects within New York City, except for safety projects. The corrective measures noted above may be expanded to other geographic areas within the State of New York, if any noncompliance continues.”
Reacting to the court ruling, New York Gov. Hochul said in a statement: “Judge Liman’s temporary restraining order is a massive victory for New York commuters, vindicating our right as a state to make decisions regarding what’s best for our streets. New Yorkers deserve to control our own traffic patterns, keep gridlock off our streets and protect our clean air. We need to make the massive investments necessary to support our transit system and prevent it from falling into disarray and disrepair. Congestion pricing is the right solution to get us there.”
She added, “So, here’s the deal: Sec. Duffy can issue as many letters and social media posts as he wants, but a court has blocked the Trump Administration from retaliating against New York for reducing traffic and investing in transit. Congestion pricing is legal, it’s working and we’re keeping the cameras on.”
The MTA board is scheduled to meet today (May 28) and may discuss the latest developments in its battle with the federal government to protect its congestion pricing program, which went into effect on Jan. 5 and is meeting MTA revenue projections.
Published: May 28, 2025