The U.S. Department of Transportation has rescinded its approval for New York City’s congestion pricing toll program, triggering an immediate legal challenge from the MTA in federal court.

U.S. Transportation Secretary Sean P. Duffy announced the decision on Wednesday, calling the $9 toll on most vehicles entering Manhattan south of Central Park “a slap in the face to working-class Americans and small business owners.”

Duffy stated that the agency would work with the state on an “orderly termination of the tolls.”

The decision marks a major policy reversal, as the congestion pricing system—which launched on January 5—had received prior federal approval.

At a fiery press conference, New York Gov. Kathy Hochul condemned the move, asserting that it infringes on state sovereignty.

“Within seconds of us getting this notification, our MTA was prepared—we filed a lawsuit within minutes,” Hochul said.

She also vowed to keep the congestion cameras running, stating:

“We are keeping the cameras on.”

MTA Chair Janno Lieber backed Hochul’s stance, citing early data that shows congestion pricing is benefiting the city:

• Traffic in January dropped by 9%, with 1.2 million fewer vehicles entering the Central Business District
• Bus speeds improved, crashes declined, and pedestrian traffic surged
• Restaurant reservations are up 7%, Broadway grosses increased by 25%, and commercial office leasing jumped 61% year-over-year

“People want to be in New York,” Lieber said, rejecting claims that the tolls hurt businesses.

Polls suggest 60% of New Yorkers believe the president should allow the city and state to keep congestion pricing.

However, President Donald Trump, a longtime opponent of the plan—whose Trump Tower penthouse and properties sit within the congestion zone—vowed to kill the initiative upon taking office.

Following the Department of Transportation’s decision, Trump celebrated on Truth Social:

“CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!”

The White House later posted an image of Trump wearing a crown in front of the New York City skyline, further fueling the political firestorm.

With the MTA filing a federal lawsuit, the fate of congestion pricing now hinges on the courts.

As the legal battle unfolds, the fight over New York City’s efforts to reduce traffic and fund transit infrastructure has become a flashpoint in national politics, pitting state officials against the federal government in a high-stakes showdown.