NEW YORK (WABC) — The Trump administration must release millions of dollars in funding for the Gateway Tunnel project after a federal court order blocking that money expired.
The decision is a major legal victory for the Gateway Development Commission and clears the way for the critical rail project, which will connect New Jersey to New York Penn Station, to move forward.
New York and New Jersey officials are urging the federal government to release the funds after a judge ordered the Trump administration to restore $205 million for the Gateway project.
The administration froze the money last Friday, halting construction and affecting as many as 1,000 jobs.
The transfer of funds was supposed to begin by 5 p.m. Thursday under the judge’s order. The money had already been allocated by Congress, though President Donald Trump said months ago that the project was “terminated.”
Up to this point, federal officials had not released any of the allocated funding.
The Gateway Tunnel project carries an estimated $16 billion price tag, with more than $1 billion of work already underway.
The project is widely viewed as essential infrastructure because it adds two new rail tubes under the Hudson River, a key safeguard against major disruptions to regional rail travel.
The states are expected back in court on Feb. 23 as the federal government appeals the ruling.
New Jersey Gov. Sherrill is scheduled to hold an 11:30 a.m. press conference Friday calling on federal officials to restore the funds so construction can resume.
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