President Donald Trump’s effort to stop the MTA’s congestion pricing program fell flat Tuesday after a federal judge ruled the U.S. Department of Transportation’s attempt to kill the tolls was unlawful.

The order from Manhattan U.S. District Judge Lewis Liman stated Transportation Secretary Sean Duffy doesn’t have the authority to revoke federal approval for the program.

The ruling represents a major loss for Trump who, during his 2024 campaign, vowed to “TERMINATE” the tolls upon returning to office. The White House last month dispatched one of its top legal attack dogs to fight the tolls in court.

The feds approved the congestion tolls under former President Joe Biden, and the MTA launched the program in early January 2025. It imposes a $9 daytime base fee on drivers who enter Manhattan south of 60th Street, and uses the revenue to fund mass transit improvements. The MTA said it raked in $562 million from the fees last year.

Duffy sent a letter to the MTA last February demanding the agency stop charging the fees or else face funding cuts. The MTA responded with a lawsuit.

“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,” MTA Chair Janno Lieber wrote in a statement. “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 — Sec. Duffy failed and New York is winning.”

Transportation department spokesperson Danna Almeida said in a statement the feds were “reviewing all legal options — including an appeal — with the Justice Department.”

“We disagree with the court’s ruling,” said Almeida. “Once again, working-class Americans are being sidelined under Governor Kathy Hochul’s policies, which impose a massive tax on every New Yorker.”

Liman previously ruled the feds could not withhold funding from New York or the MTA in retaliation, but the question as to whether the tolls could remain in place indefinitely remained up in the air until he issued his ruling on Tuesday.

Liam Quigley contributed reporting to this story.

This story has been updated with a statement from the Trump administration.