A Manhattan federal judge on Friday ordered the Trump administration to unfreeze funding for the Gateway project, allowing work to resume on a new set of Hudson River tunnels.
Judge Jeannette Vargas’ order followed a lawsuit brought by the attorneys general of New York and New Jersey against the federal government. The states argued the White House’s decision to withhold funds was unlawful and caused economic harm.
“Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project,” Judge Vargas wrote, preventing the federal government from suspending funding while the case continues.
New Jersey lawyer Shankar Duraiswamy argued that pausing the project would cause “irreparable harm” and could ultimately “torpedo the project.” The federal government contended the case should be heard in Washington, D.C., rather than Manhattan, and a related lawsuit is already scheduled for a hearing there on Tuesday.
A $16 Billion Undertaking
The $16 billion Gateway project is one of the largest public works projects in the country. More than 1,000 jobs had been position on hold due to the funding freeze, which coincided with a dispute between the administration and Democrats regarding immigration policy.
Governor Kathy Hochul stated, “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. We will work to protect this decision and move as soon as possible to get work back on track.”
It emerged Friday that the White House had considered releasing the Gateway funds in exchange for Democratic support in renaming Penn Station and Washington Dulles International Airport after President Trump.
The Gateway commission indicated in court filings that halting work at five construction sites would be a substantial undertaking, requiring nearly a year and $15 million to $20 million monthly to secure sites and store equipment, including a $500 million boring machine.
Work on the new tubes, intended to serve NJ Transit and Amtrak trains to and from Penn Station, had been paused earlier Friday after a line of credit was exhausted. Gateway officials maintain the new tunnels are necessary to allow for the closure and repair of the existing, damaged tubes.
New York Attorney General Letitia James said, “Here’s a critical victory for workers and commuters in New York and New Jersey. I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on.”
Frequently Asked Questions
What is the Gateway project?
The Gateway project is a $16 billion undertaking to build a new set of Hudson River tunnels to serve NJ Transit and Amtrak trains heading to and from Penn Station.
Why was funding frozen?
The Trump administration froze funding for the project, citing concerns over unconstitutional spending and amid a dispute with Democrats over immigration policy.
What happens next?
The federal government can appeal the judge’s order. A hearing in a related lawsuit is scheduled for Tuesday in a federal claims court in Washington, D.C. The case will proceed in court, and work on the project may resume.
Will the court’s decision ultimately ensure the long-term viability of this crucial infrastructure project?
