Court Orders Trump to Unleash $16B for New York-New Jersey Tunnel

A federal judge intervened Friday, halting the Trump administration's attempt to suspend federal funding for the Gateway Tunnel project, a critical infrastructure initiative linking New York and New Jersey.

Without this judicial intervention, construction was set to cease Friday night, jeopardizing nearly 1,000 jobs immediately, with a potential risk of 11,000 jobs if the pause extended. Judge Jeannette Vargas has requested both parties to provide further information on the matter in the coming days.

The tunnel, designed to run beneath the Hudson River, is part of a $16 billion project that has faced numerous delays. The administration's funding freeze began during last fall's government shutdown and persisted even after funding packages were approved this week.

In a controversial move, sources indicated that the administration proposed naming Dulles International Airport and Penn Station after President Trump in exchange for releasing the necessary funds for the tunnel.

New York Governor Kathy Hochul hailed the ruling as a confirmation that the funding freeze by the Trump administration “is likely to be found unlawful.”

“This ruling is a victory for the thousands of union workers who will build Gateway and the hundreds of thousands of riders who rely on it every day,” Hochul stated.

New York Attorney General Letitia James echoed this sentiment, calling the ruling a “victory for workers and commuters in New York and New Jersey,” emphasizing that the funding freeze threatened a project vital to the region.

The Gateway Tunnel project, estimated at $16.1 billion, aims to construct a new railway tunnel under the Hudson River. The initiative gained momentum in 2024 when President Biden's administration pledged an additional $6.9 billion in funding after years of setbacks.

“Suspending the funding for this monumental project based on the President’s desire to punish political rivals violates the Administrative Procedure Act many times over,” the states argued in their complaint, seeking to overturn the September 30 decision to halt federal funding.

Allegations surfaced that the funding was frozen as part of “political retribution” by President Trump. New Jersey Governor Mikie Sherrill criticized this move as “plainly illegal.”

Jennifer Davenport, acting attorney general of New Jersey, warned that halting construction would “cause grave harm to New Jersey and New York.”

“The Trump Administration must drop this campaign of political retribution immediately and must allow work on this vital infrastructure project to continue,” Davenport insisted.

At the time of the funding freeze, White House budget director Russell Vought claimed it was necessary to prevent funds from being used for “unconstitutional DEI principles.”

Both New Jersey and New York have initiated legal action to compel the administration to release funds that had already been appropriated.