U.S. District Judge Jeannette Vargas ordered the Trump administration to release billions in federal funding for the $16 billion Gateway rail tunnel, concluding that delays would harm the public interest. The judge set a Feb. 11 deadline for the parties to submit a joint letter on key legal issues. The pause had halted work and cost about 1,000 construction jobs; officials in New York and New Jersey hailed the ruling as a victory for workers and for a major infrastructure project.
Federal Judge Orders Release of Billions for Gateway Tunnel, Clearing Path to Resume Construction
A federal judge late Friday ordered the Trump administration to unfreeze billions of federal dollars for the Gateway rail tunnel project, delivering a legal victory for New York and New Jersey and raising the prospect that stalled construction could resume.
U.S. District Judge Jeannette Vargas of the Southern District of New York wrote that the plaintiffs "have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project." The judge also directed both sides to meet and file a joint letter addressing roughly half a dozen legal questions in the case by Feb. 11.
"Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project," the opinion said.
Neither the U.S. Department of Transportation nor the White House immediately responded to requests for comment.
The ruling was welcomed by officials in both states. New York Attorney General Letitia James called the decision a "critical victory" for workers across New York and New Jersey. Acting New Jersey Attorney General Jennifer Davenport said the order "should ensure that nearly 1,000 workers will be able to keep their jobs and continue their work on the Tunnel," suggesting construction could restart soon.
Background
The $16 billion Gateway program, one of the nation's largest infrastructure projects, would build a new rail tunnel beneath the Hudson River to improve capacity and reliability between New Jersey and New York. Work had been halted Friday after the Trump administration withheld federal funds, resulting in the immediate loss of roughly 1,000 construction jobs.
DOT announced in October that it was pulling Gateway funds pending a review into whether diversity, equity and inclusion practices played a role in contractor selection. Since then, President Donald Trump has publicly called the project "terminated," and he and Transportation Secretary Sean Duffy have issued conflicting statements about its status. POLITICO reported that Trump had at one point sought renaming concessions — asking that Dulles Airport and New York Penn Station be named after him — as a condition for releasing the funds; Senate Minority Leader Chuck Schumer said he rejected the offer.
What Comes Next
With the judge's order, the federal government must restore access to the allocated funds while the case proceeds. The Feb. 11 deadline requires both parties to narrow the legal issues for the court, which should speed resolution and help determine whether construction can fully resume without further interruptions.
Why it matters: Restarting Gateway would protect thousands of daily commuters, fortify a critical cross-state rail link, and preserve construction jobs tied to a multibillion-dollar infrastructure investment.
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