A US judge has issued a temporary order barring the US Department of Transportation from withholding federal funding from New York, as the Trump administration seeks to scrap Manhattan’s congestion pricing programme.

US District Judge Lewis Liman held the hearing on Tuesday just one day before the federal government was expected to begin withholding approvals for key projects in New York, following an earlier warning by Transportation Secretary Sean Duffy.

The Trump administration on 19 February rescinded federal approval of the initiative, which was designed to reduce traffic and generate funding for upgrades to New York’s ageing subway and bus systems. The programme charges most passenger vehicles $9 during peak periods to enter Manhattan south of 60th Street.

At the time, Duffy said the programme offered no free highway alternative for drivers and took money “from working people to pay for a transit system and not highways.”

Soon after federal approval was withdrawn, New York City, New York State, and the Metropolitan Transportation Authority (MTA) filed a lawsuit challenging the move.

Judge Liman’s order prevents Duffy from enforcing the rescission or taking any funding or enforcement action against New York.

New York Governor Kathy Hochul hailed the ruling as “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 the order will remain in place until 9 June. According to Lieber, Liman made it clear he “wants no more coercive threats” from the Trump administration and is pushing for a speedy legal resolution.

A US Department of Transportation (USDOT) spokesperson noted that the judge had not yet ruled on the merits of the case, 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 scheme in January. In April, Duffy warned Governor Hochul that the USDOT could begin withholding environmental approvals or project funding from 28 May if the scheme was not halted by Wednesday—a demand the state declined.

City officials say the programme has already delivered results, with about 5.8 million fewer cars than projected entering the congestion zone between January and March—a drop of 8% to 13%.

Data from April shows a further 12% reduction in traffic, with improved travel times into Manhattan. The city also reported increases in hotel stays, retail spending and pedestrian activity.