The Trump administration cannot revoke approval for the New York Metropolitan Transportation Authority's congestion pricing tolling program, a federal judge ruled on Tuesday.
President Donald Trump and his administration have been battling the MTA over congestion pricing for most of his second term. The agency continues to fight lawsuits over congestion pricing from other parties, and other federal attempts to strip its funding.
Expected congestion pricing revenue supports $15 billion of the MTA's 2020-2024 capital program; the agency plans to issue bonds for most of that amount. The program's tolls apply to drivers entering Manhattan south of 60th street, and generated
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The White House celebrated the move with a social media post declaring "
Duffy argued any secretary of transportation had the authority to revoke approval for a congestion pricing program. In the
"The secretary's argument is essentially that because the statute permits him to enter into pilot projects for the use of federal aid highways to reduce congestion, he must also have the authority — regardless of the terms of those agreements and regardless of the reason — to terminate the projects," Liman wrote.
The MTA has refrained from issuing long-term bonds backed by congestion pricing revenue until all related lawsuits are decided. But the eventual bonds — and the agency's short-term debt — played a prominent role in this case.
By the end of last year, the MTA (through the Triborough Bridge and Tunnel Authority) had issued more than a billion dollars of short-term debt intended to be repaid by congestion pricing revenue, Liman wrote in his decision. This included a $185 million note to be repaid in December 2025, a $193 million note,
The MTA used its debt as evidence for its reliance on congestion pricing revenue. Duffy claimed, "the reliance interests arising from these bonds are 'exaggerated and self-imposed,'" because the MTA could repay the bonds with TBTA's general revenues. Liman sided with the MTA.
The MTA also argued "investors in bonds have expressed uncertainty" because the tolling program could be terminated, Liman wrote, "and that such insecurity has depressed the value of the bonds (and thereby presumably raised plaintiffs' cost of capital)."
Liman also said, "few if any persons would buy bonds to support a capital project" if any transportation secretary could revoke approval for revenue streams on a whim.
The MTA's transportation revenue bond credit is rated A by S&P Global Ratings, A2 by
MTA CEO Janno Lieber celebrated the judge's ruling in a statement.
"We've said it all along, and Judge Liman's clear, detailed ruling leaves no doubt: congestion pricing is legal. It's here to stay. And it works," Lieber said. "Traffic is down, business is up, and we're making crucial investments in a transit system that moves millions of people a day. Today — once again — Secretary Duffy failed and New York is winning."
The MTA, along with city and state leaders, have been touting
Despite this victory, the MTA must still contend with other
