Congestion pricing ruling will be later than expected

Bloomberg News

A federal judge delayed his decision on the fate of New York City's congestion pricing initiative, setting oral arguments for Jan. 28 in the legal fight over new tolls on some of Manhattan's busiest streets to fund transit improvements.

The Metropolitan Transportation Authority, which runs the city's transit system and implemented the toll, sued in February after the Trump administration rescinded approvals that had been granted under the Biden administration.

In May, U.S. District Judge Lewis Liman said he anticipated issuing a final judgment by the end of 2025. But on Tuesday, he set a two-hour hearing for next month for both sides to make their case in person. 

Liman in May did grant a restraining order blocking the U.S. Department of Transportation from withholding the state's federal funds during the court battle.

New York City's congestion pricing program is the first of its kind in the U.S. It began on Jan. 5, 2025, with most passenger vehicles paying $9 during peak hours to drive into the tolled zone, which runs from 60th Street to the southern tip of the island. Trucks pay a higher fee.

According to his order Tuesday, Liman will hear oral arguments on separate motions for summary judgment made by the MTA and the federal government. 

The MTA is seeking to issue debt in 2026 that would be secured with the congestion pricing toll revenue. The transit agency anticipates collecting $548.3 million of toll revenue, after expenses, in 2025.