![\"Judge](\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2026\/02\/Hudson-Tunnel-Project-Aerial-View.jpg\" "\\"Judge")
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Credit: Gateway Development Commission<\/p>\n
A federal judge has ordered the Trump administration to resume funding for the Gateway project, finding that the president illegally blocked federal support for the critical rail link between New York and New Jersey. The order, issued Friday by Manhattan Judge Jeannette Vargas, follows a lawsuit<\/a> filed by New York and New Jersey seeking emergency relief to stop the U.S. Department of Transportation (USDOT) from withholding funds for the project. The administration filed an appeal<\/a> against the decision on Sunday.<\/p>\n In a statement<\/a>, Gov. Kathy Hochul celebrated the ruling, calling it a \u201cvictory\u201d for the thousands of workers and riders who will benefit from the project.<\/p>\n \u201cToday, a judge affirmed what we\u2019ve said from the start: our case against the Trump administration is likely to succeed, and Donald Trump\u2019s attempt to rip away funding and derail the Gateway Tunnel project is likely to be found unlawful,\u201d Hochul said on Friday.<\/p>\n \u201cThis 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.\u201d<\/p>\n In her ruling, Vargas wrote that the \u201cplaintiffs had adequately shown that public interest would be harmed by a delay in a critical infrastructure project,\u201d as reported by Gothamist<\/a>. The states argued that they filed the lawsuit because halting the project would \u201ckill thousands of jobs\u201d and \u201cimperil\u201d the commutes of New Yorkers and New Jerseyans.<\/p>\n Vargas\u2019 ruling marks another chapter in the contentious legal battle over Gateway, one of the nation\u2019s largest infrastructure projects. The initiative includes the Hudson Tunnel Project, which will build a new two-tube tunnel beneath the Hudson River and rehabilitate the century-old tunnels that connect NY and NJ.<\/p>\n Federal funding for the project stopped flowing in October during the government shutdown and was never resumed despite a previous $12 billion commitment made under the Biden administration, as 6sqft previously reported<\/a>.<\/p>\n Most work at the site had stopped last Friday, immediately eliminating roughly 1,000 construction jobs. <\/p>\n Trump initially paused the funds pending a review of the project\u2019s contracts for compliance with new rules governing women- and minority-owned businesses. Catherine Rinaldi, executive vice president of the Gateway Development Commission (GDC), told the New York Times<\/a> that the contracts had been \u201cappropriately certified,\u201d though funding was never restored.<\/p>\n In January, the Times reported that the administration offered another explanation for the continued funding delay, blaming Sen. Chuck Schumer, one of the project\u2019s biggest supporters, and other Democrats for refusing to negotiate and citing their positions on immigration.<\/p>\n Last week, it was reported that Trump last month told Schumer that he\u2019d resume funding for Gateway only if New York\u2019s Penn Station and Washington\u2019s Dulles International Airport were renamed after him<\/a>. Schumer declined.<\/p>\n Construction on the project began in November 2023, with tunnel boring slated to start this summer. In August, the GDC announced that two massive tunnel-boring machines are scheduled to arrive in early 2026 to excavate the 2.4-mile connection to Penn Station, with one already on site, according to the\u00a0Times<\/a>.<\/p>\n In response to Vargas\u2019 order, the Trump administration argued that the case should not have been heard in Manhattan, saying it belonged instead in federal claims court in Washington, D.C. That is where the GDC\u2019s separate breach-of-contract lawsuit against the government is scheduled for a hearing on Tuesday, according to Gothamist.<\/p>\n