Federal Judge Orders Restoration of $16 Billion for Hudson Tunnel Project
Judge Jeannette A. Vargas bars the Trump administration from withholding $16 billion for the Hudson Tunnel Project pending further court proceedings.
Overview
U.S. District Judge Jeannette A. Vargas in Manhattan granted New York and New Jersey a temporary restraining order directing the U.S. Department of Transportation to restore $16 billion in federal funding for the Hudson Tunnel Project, according to court documents.
The order came hours after the Gateway Development Commission warned construction would halt late Friday and that about 1,000 jobs would be lost immediately, which the states said would cause irreparable harm to a critical infrastructure project.
New York Attorney General Letitia James praised the ruling as "a critical victory for workers and commuters," while Assistant U.S. Attorney Tara Schwartz argued at a Manhattan hearing that the states' claims of imminent harm were overstated, according to court records.
The Trump administration froze the funds amid a review citing concerns about compliance with new federal prohibitions on race- and sex-based considerations in contracting, and the Department of Transportation and White House did not immediately respond to requests for comment.
Judge Vargas ordered both parties to submit additional information within days and set a timetable for briefing as the states pursue a preliminary injunction to keep funds flowing while litigation proceeds.
Analysis
Center-leaning sources frame the story as an urgent public-interest victory over politically driven federal interference, emphasizing job losses, commuter harm, and the judge’s intervention. They prioritize state and project officials’ alarmed statements (e.g., “senseless funding freeze,” “massive hole”), while presenting administration rationale more briefly, producing a cumulative narrative of wrongful political retribution.
Sources (7)
FAQ
The Hudson Tunnel Project, also known as the Gateway project, is a $16 billion infrastructure initiative to build a new rail tunnel under the Hudson River between New York and New Jersey, easing strain on the existing 110-year-old tunnel used by Amtrak and commuter trains.
The Trump administration froze the $16 billion in funds starting October 2025, citing a review for compliance with federal prohibitions on race- and sex-based considerations in contracting, along with concerns over diversity, equity, and inclusion practices.
Judge Vargas granted a temporary restraining order requiring the U.S. Department of Transportation to restore the $16 billion funding pending further proceedings, to prevent irreparable harm from project halt and job losses.
The freeze threatened to suspend construction on February 6, 2026, leading to immediate loss of about 1,000 jobs and risks to train travel along the East Coast.
The Gateway Development Commission stated it is hopeful funding will resume soon, allowing quick restart of site operations and return of workers, though it was not immediately clear when work would resume.
History
3 sources