The New Jersey congestion pricing lawsuit is a federal challenge the state filed in July 2023 to block New York’s Manhattan tolling program, arguing that federal regulators approved it without a proper environmental review. The case, New Jersey v. United States Department of Transportation, produced a split ruling in December 2024 that let the tolls launch on schedule but ordered the Federal Highway Administration to revisit how it allocated mitigation money to New Jersey. As of mid-2026, the suit is paused while Governor Mikie Sherrill’s administration pursues settlement talks with New York.
Who Sued, and What New Jersey Is Asking For
Then-Governor Phil Murphy’s administration filed the complaint on July 21, 2023, in federal court in Newark, naming the U.S. Department of Transportation and the Federal Highway Administration as defendants.1New Jersey Monitor. New Jersey Sues to Block New York City’s Congestion Pricing Plan In January 2024, New Jersey amended the complaint to add the Metropolitan Transportation Authority and to argue that the program discriminated against New Jersey residents in violation of the U.S. Constitution.2Bloomberg. NY Congestion Pricing Plan Violates US Constitution, Murphy Says
The heart of the case is procedural. New Jersey alleges that the FHWA violated the National Environmental Policy Act, the Administrative Procedure Act, and the Clean Air Act by issuing a Finding of No Significant Impact instead of requiring a full environmental impact statement. The state argues the agency failed to take the required “hard look” at how diverted traffic would affect air quality and congestion on local roads in Bergen County and in environmental justice communities in Essex County, and that New Jersey transportation agencies were not given “a meaningful and early opportunity” to participate in substantive discussions with federal regulators.3NYC Streetsblog. NJ’s Congestion Pricing Lawsuit: Why Should It Fail
After New York cut the toll from the originally studied $15 to $9 ahead of the January 2025 launch, New Jersey amended its complaint again, arguing that the federal reevaluations done to account for the lower toll were inadequate.4NY1. New Jersey Amends Its Lawsuit to Stop Congestion Pricing
What the Court Has Decided
The case was assigned to Judge Leo M. Gordon of the U.S. Court of International Trade, sitting by designation in the District of New Jersey. On December 30, 2024, Judge Gordon issued a split ruling on summary judgment.5Justia. State of New Jersey v. United States Department of Transportation
New Jersey lost on most of its central claims. The court found that the geographic scope of the environmental assessment, the agency’s outreach efforts, and its decision not to use New Jersey’s preferred mapping tool for environmental justice communities were not arbitrary.6Regional Plan Association. Status of New York Congestion Pricing Litigation
Where the state won was on money. Judge Gordon found that the FHWA acted arbitrarily by setting aside $71.7 million in mitigation funding for the Bronx while directing only $9.8 million to New Jersey, without a rational explanation for the gap.7New Jersey Monitor. Brief Order to Show Cause, Congestion Pricing He remanded that question to the FHWA and set a January 17, 2025, deadline for the agency to respond.8ABC7 New York. New York to Stick With Congestion Pricing Start Date Despite Judge’s Opinion
The two sides read the decision very differently. Governor Kathy Hochul called it a “massive win,” and MTA Chair Janno Lieber said the agency was “full speed ahead” on its January 5, 2025, start date. New Jersey’s outside counsel, Randy Mastro, argued the remand meant the MTA could not lawfully turn the cameras on.8ABC7 New York. New York to Stick With Congestion Pricing Start Date Despite Judge’s Opinion On January 3, 2025, a federal judge denied New Jersey’s emergency request to halt the program, and the state indicated it would seek emergency relief from the Third Circuit.9The New York Times. Congestion Pricing Hearing, New Jersey Tolling began as planned on January 5, 2025.10NJ.com. Lawsuit Over Fee to Enter Lower Manhattan Could Be Headed to Mediation
Where the Case Stands Now
Governor Sherrill, who succeeded Murphy, has shifted the strategy toward negotiation. Attorneys for New Jersey and New York held a settlement conference on April 24, 2026, and a federal judge granted a stay of the litigation through June 10, 2026, to let talks continue.11NJ Spotlight News. NYC Congestion Pricing Back in Court as Trump Appeals Tolls Ruling Spokespeople for Sherrill have declined to discuss the substance of the talks.12New Jersey Monitor. Trump Administration Appeals Congestion Pricing An earlier attempt at settlement in November 2023, under Murphy, failed.10NJ.com. Lawsuit Over Fee to Enter Lower Manhattan Could Be Headed to Mediation
Through November 2024, New Jersey had spent more than $1.1 million in legal fees on the case. The state is represented by the law firm King & Spalding at a discounted government rate of $250 per hour, compared with the firm’s standard rate of over $2,000 per hour.13New Jersey Monitor. Legal Tab for New Jersey’s Fight Against Congestion Pricing Tops $1.1M
How It Fits With the Trump Administration’s Separate Fight
New Jersey’s suit is not the only federal case about congestion pricing, and the distinction matters because they cut in opposite directions. On February 19, 2025, Transportation Secretary Sean Duffy sent a letter revoking federal approval for the program. The MTA sued the same day in the Southern District of New York, and that case, MTA v. Duffy, was assigned to Judge Lewis Liman.14New York State Bar Association. Congestion Pricing in the Courts
On April 21, 2025, Duffy escalated with a “show cause” directive threatening to withhold federal highway and transit funding from New York if the state did not stop the tolling.15Courthouse News Service. Trump Administration Ramps Up Threats Against NYC Congestion Pricing Program Judge Liman first issued a preliminary injunction in May 2025 blocking the termination, then on March 3, 2026, granted partial summary judgment to the MTA in a 149-page decision, finding Duffy’s action “arbitrary and capricious, an abuse of discretion and not in accordance with the law.” He vacated both the February revocation and the April show-cause directive.16West Side Spirit. Congestion Pricing Stays: Judge Rules Trump Admin Effort to End It Was Illegal The Trump administration has appealed to the Second Circuit, where the appeal remains pending.11NJ Spotlight News. NYC Congestion Pricing Back in Court as Trump Appeals Tolls Ruling
So two separate federal cases are moving at once. New Jersey is suing to invalidate the environmental approval that let the program start; the federal government is trying to withdraw that approval; and the MTA is defending the program against both. Judge Liman’s ruling keeps the tolls in place while New Jersey’s own case waits in a settlement posture.
What New Jersey Drivers Pay in the Meantime
While the litigation plays out, the toll is live. Drivers entering Manhattan south of 60th Street during peak hours (5 a.m. to 9 p.m. on weekdays, 9 a.m. to 9 p.m. on weekends) pay $9 with E-ZPass. The overnight rate is $2.25, and drivers without E-ZPass pay roughly $13.50 via “pay by mail.”17CBS News New York. NYC Congestion Pricing Discounts Exemptions
Drivers coming through the Lincoln or Holland tunnels during peak hours receive a $3 E-ZPass credit, bringing the effective toll to $6.18NY1. How Will Congestion Pricing Affect New Jersey and Upstate Commuters No equivalent credit applies to the George Washington Bridge, which has been a persistent complaint from North Jersey officials.19SILive.com. Lawsuit Against NYC Congestion Pricing Filed by UFT, Staten Island Borough President Commuter buses are exempt, and drivers who stay on the West Side Highway or FDR Drive without exiting into the zone are not charged. A low-income discount plan offers 50 percent off after the first 10 trips in a month, but it is not specific to New Jersey residents.17CBS News New York. NYC Congestion Pricing Discounts Exemptions
The toll is scheduled to rise to $12 in 2028 and $15 in 2031.20New Jersey Monitor. Judge Trump Congestion Pricing Ruling In its first year, the program generated $468 million in tolls through October, and data cited in Judge Liman’s ruling showed an 11 percent decrease in vehicle entries and a 7.1 percent decrease in vehicle miles traveled within the congestion zone between January and September.16West Side Spirit. Congestion Pricing Stays: Judge Rules Trump Admin Effort to End It Was Illegal Whether the New Jersey case produces a settlement, a renewed push for an injunction, or a trip back to the Third Circuit will depend on what comes out of the current negotiations before the stay expires.