A federal judge in Manhattan has rejected nearly all the legal arguments against the MTA’s congestion pricing program, upholding the federal approval of the tolls that Gov. Kathy Hochul put on pause.

The ruling by Judge Lewis Liman came in lawsuits brought by the city teacher’s union, residents of the Lower East Side and Battery Park City. A federal judge in New Jersey is overseeing another set of suits also challenging the approval of the tolling program, which would have charged drivers a base fee of $15 to enter Manhattan south of 60th Street.

In a 113-page opinion released late Thursday, Liman wrote that the MTA and Federal Highway Administration thoroughly studied and prepared for congestion pricing. The program, he wrote, would not adversely harm the environment, dismissing arguments by opponents that the tolls would merely shift traffic and pollution to areas outside Manhattan.

“The environmental consequences of Congestion Pricing are ultimately familiar. All tolls affect traffic patterns — diverting cars and trucks while incentivizing the use of public transit— and thus can alter air quality and noise in the surrounding communities,” Liman wrote. “Indeed, the FHWA’s reliance on well-established modeling tools to analyze Congestion Pricing’s consequences confirms that its effects are typical for transportation projects. Congestion Pricing therefore did not pose the kind of novel environmental threat that inherently demands further study.”

The ruling represented a significant win for the MTA – but nevertheless had no effect on Hochul’s “indefinite pause” of the tolls. The governor unexpectedly halted the program, which was to go into effect June 30, earlier this month. Hochul said the move was necessary because the tolls would have been too much of an economic burden on drivers and could hinder Manhattan’s recovery from the pandemic.

"We appreciate the thorough evaluation of the environmental review by Hon. Judge Lewis Liman, and his acknowledgment of the comprehensive analyses and public process that led to the federal government's Finding of No Significant Impact for the Central Business District Tolling program,” MTA General Counsel Paige Graves wrote in a statement. “We stand ready to relieve congestion and improve transit service for millions of riders."

Advocates cited the ruling as further evidence that Hochul should reinstate the tolling program, which would have funded $15 billion in improvements to public transit. Hochu’s decision has blown a hole in the MTA’s budget, prompting the agency to reassess its construction plans.

"Governor Hochul should take Judge Liman's decision as her opportunity to revive congestion pricing," Riders Alliance Executive Director Betsy Plum wrote in a statement. "Rather than blow a $15 billion hole in the MTA's budget and cost New York another $10 billion in federal transit aid, Governor Hochul can reverse course now and implement congestion pricing, which would be a major victory for public transit, public health, and affordability."

The Manhattan cases featured similar arguments to the lawsuits brought in New Jersey against the program. Both alleged the MTA’s mitigation measures to offset the increase in truck traffic at a handful of locations outside Manhattan were inadequate. Liman disagreed, ruling that $155 million in mitigation, including parts of New Jersey and the Bronx, “displayed both careful consideration and a deep commitment.”

One of the lawsuits brought by Elizabeth Chan, a Christmas song writer who lives in Battery Park City, argued that congestion pricing would increase traffic in her neighborhood and lead to slower ambulance response times.

Liman disagreed, noting that the federal analysis found that traffic would not worsen on the West Side Highway, which would be exempt from the congestion toll.

“If the busiest intersections along the exempted West Side Highway would not be burdened by worse traffic under Congestion Pricing, then surely the tolled streets of [Battery Park City] would not either,” he wrote.

Though the ruling was largely in favor of the MTA, the judge solicited further briefing on one count centering on how the federal approval of congestion pricing aligned with the MTA's own process setting the final toll structure.