New York scored another victory in its fight to keep congestion pricing going.

“The state of New York has prevailed, and all the attacks that have been unleashed by the Trump administration on congestion pricing,” said Gov. Kathy Hochul in a video posted to X. “We won in court again.”

What You Need To Know

A judge ruled that congestion pricing can continue in New York City, but the MTA may be gearing for another legal battle with the USDOT over funding for the Second Avenue Subway extension to 125th Street

The federal government stopped paying reimbursements for its share of the Gateway Tunnel Porject, between New York and New Jersey, and the Second Avenue subway in October

A lawyer for the MTA sent a letter threatening legal action of $60 million  in reimbursements to the federal government over funding for the Second Avenue subway

In a 149-page decision, U.S. District Judge Lewis Liman determined that the Department of Transportation could not legally end the Value Pricing Pilot Program, or VPPP, agreement just because the administration changes its mind.

“It is really a decision that shows that congestion pricing is legal, that it follows the rules,” said Lisa Daglian, the executive director of the Permanent Citizens Advisory Committee to the MTA. “And the cameras are staying on.”

But not everyone agrees that the ruling is the end. The DOT, in a statement, said it’s considering its options — including an appeal. 

“The judge did say, on a limited basis, that the DOT still has a right to terminate just pursuant to a different provision,” said Valerie Mason, of the group New Yorkers Against Congestion Pricing Tax, which had filed a lawsuit against the toll and lost. “So, again, we’re hopeful that the DOT will go forward with this.”

But it’s not clear what provisions those are. There could be a new, separate lawsuit.

“We’re waiting to see where this came out, to see what we were going to do next,” said Mason. “So we’re still planning about that.”

Meanwhile, on Tuesday, one of two cases was in court trying to guarantee funding for the Gateway Tunnel, the new rail tunnel being built between New York and New Jersey. The federal government said the project was originally stopped because of changes to the rules around contracting based on sex and race.

The Gateway Development Commission complied, and it took an emergency court order to get millions of dollars paid after work had to stop. 

“While the four major contracts that were suspended back in February have been restarted, the Gateway Development Commission has two more contracts that they were planning to let out that they are now holding on to because they need clarity on the legal issues,” said Tom Wright, president and CEO of the Regional Plan Association. “They need to make sure that the next money is going to come.”

Wright said these battles are about more than infrastructure.

“This is part of a broader federal attack on, on, on local aid of all kinds,” said Wright.

A decision could be weeks away on future Gateway funding.

“That delay can effectively kill a project because contracts expire, because costs go up dramatically over time, due to inflation or interest rates,” said Wright.

Now, the MTA is in the same position as the Gateway Development Commission. The federal government, citing the same reason, stopped paying for the Second Avenue subway extension to 125th Street.

A lawyer for the MTA sent a letter threatening legal action of $60 million in reimbursements wasn’t paid by Friday.