Court Orders Release Of Gateway Tunnel Funds
A court-ordered release of about $127 million cleared the way for work to restart on the $16 billion Gateway tunnel under the Hudson River.
Overview
On Feb. 18, New York Attorney General Letitia James announced the U.S. Department of Transportation released the remaining $127 million, allowing the Gateway Development Commission to resume construction.
New York and New Jersey sued the administration on Feb. 3 after federal officials began withholding payments on Oct. 1, and a Manhattan federal judge issued a temporary restraining order requiring disbursements to resume.
Letitia James called the freeze unlawful, Gov. Kathy Hochul called the release a 'major win,' and Tom Prendergast, the commission CEO, said contractors would be notified and work would resume next week.
The project carries an estimated $16 billion cost and would build nine miles of new track, repair century-old tunnels used by more than 200,000 travelers and 425 trains daily, and had sidelined about 1,000 workers.
The Gateway Development Commission said it now has more than $205 million available to fund work, the federal government is expected to challenge the ruling, and the legal fight over funding continues.
Analysis
Center-leaning sources frame the story as a judicial and economic rebuke to the Trump administration, using evaluative language ("a blow to President Donald Trump," "illegally withheld") and foregrounding New York officials' statements and regional economic risks. Administrative rationales (DEI concerns, Truth Social denial) are reported but downplayed compared with local criticism.
Sources (7)
FAQ
The search results do not explicitly state the Trump administration's stated reason for the funding freeze that began on October 1, 2025. The results only indicate that New York and New Jersey sued the administration on February 3 after federal officials began withholding payments, and that New York Attorney General Letitia James called the freeze unlawful[1]. The underlying policy rationale for the freeze is not detailed in the available sources.
The Gateway Tunnel Project carries an estimated $16 billion cost and would build nine miles of new track while repairing century-old tunnels used by more than 200,000 travelers and 425 trains daily[1]. The project is considered the nation's most critical infrastructure project and a central part of the future of the Northeast Corridor, with the region responsible for roughly 20% of the nation's GDP[1].
The funding freeze halted activity on a project that supports roughly 1,000 workers, and the program expects to add thousands more jobs as it moves along[1]. An extended construction pause would put tens of thousands of jobs at risk[2].
New York and New Jersey sued the Trump administration on February 3 after federal officials began withholding payments on October 1, and a Manhattan federal judge issued a temporary restraining order requiring disbursements to resume[1]. The U.S. Court of Appeals for the Second Circuit declined on February 18 to block the lower court order, leaving in place the temporary restraining order directing the release of the funds[1].
The Gateway Development Commission stated that construction activities are expected to resume next week, with letters sent to contractors on February 18[1]. More than $205 million in federal funding has been restored, with the federal government releasing the first batch of funds in the previous week and the rest processing in the week following the holiday[1].
History
4 sources