By David Shepardson (Reuters) - A U.S. judge on Tuesday issued an order temporarily barring the U.S. Transportation Department from withholding federal funding from New York as the Trump administration seeks to kill Manhattan's congestion pricing program. U.S. District Judge Lewis Liman held the hearing just one day before the potential start date of the federal government's withholding of approvals for New York projects, according to an earlier warning by U.S. Transportation Secretary Sean Duffy. The Trump administration on February 19 rescinded federal approval of the program designed to reduce traffic and raise money to upgrade aging subway and bus systems. Duffy said at the time that the program - which charges most passenger vehicles $9 during peak periods to enter Manhattan south of 60th Street - left drivers without a free highway alternative and took money from working people to pay for a transit system and not highways. Shortly after the Trump administration rescinded approval, New York City, New York state and the Metropolitan Transportation Authority sued to block the move. Liman's order bars Duffy from seeking to enforce the order to rescind congestion pricing approval or from taking any funding or enforcement action against New York. On Tuesday, New York Governor Kathy Hochul said Liman's decision was "a massive victory for New York commuters, vindicating our right as a State to make decisions regarding what's best for our streets. New Yorkers deserve to control our own traffic patterns, keep gridlock off our streets and protect our clean air." MTA Chief Executive Janno Lieber said after the hearing that the judge's order will extend through June 9. Liman, said Lieber, "wants no more coercive threats" by the Trump administration and wants a speedy timetable to resolve the lawsuit. A USDOT spokesperson noted that the judge has not ruled on the merits of the issue, adding, "enforcement actions for noncompliance were merely under consideration, and we will comply with the judge's request to hold. We look forward to making our case in court." New York launched its first-in-the-nation congestion pricing program in January. In April, Duffy told Hochul that USDOT may withhold environmental approvals or project funding starting on May 28 if the state did not end congestion pricing by Wednesday, which it declined to do. New York cited President Donald Trump's social media post in February that touted his effort to kill congestion pricing with the phrase: "LONG LIVE THE KING!" The White House posted on social media a mock photo of him wearing a crown. Trump compared himself to a monarch, which New York said raised questions about the legitimacy of the move. The MTA said the decision was made "for blatantly political reasons" - to uphold a Trump campaign promise. New York City says the program has dramatically cut congestion, with about 5.8 million fewer cars than expected in the congestion zone between January and March, or a reduction of 8% to 13%. Data also shows a 12% reduction in traffic in April, while travel times to cross into Manhattan have also dramatically improved, the city said, while hotel stays, retail spending and pedestrian traffic have all increased. Hochul has said that funds raised from the program would underpin $15 billion in debt financing for critical mass transit capital improvements. The USDOT under former Democratic President Joe Biden had approved the congestion program in November, which is monitored via electronic license plate readers. U.S. approval is needed because it involves tolls on federal highways. (Reporting by David Shepardson in Washington; Editing by Nick Zieminski and Matthew Lewis)
