About $30 million in federal funding was restored Friday for the Gateway Tunnel Project, a new rail tunnel under the Hudson River.
The Trump administration had missed a deadline to restart funding, and New York and New Jersey sued the administration over its withholding of the funds.
More than $200 million has been frozen since October.
Sen. Chuck Schumer praised the restoration of the funds and criticized what he says were President Donald Trump’s motivations for withholding them in the first place.
“Donald Trump shut off those funds in a nasty, vindictive act,” Schumer said. “But the people of New York, the business community, the working people — all of us raised our voices and said ‘Don’t do this! This will be so bad for our economy, for our people, for our region. Stop it!’ And tonight, they relented.”
The remainder of the funds are expected to be moved next week.
A judge overseeing the case has ordered the Trump administration to update the court on the status of the rest of the funding by Tuesday at 3 p.m.
It’s unclear when construction will begin again on the project.