Overview
- The 2nd Circuit declined to pause a district court ruling, allowing roughly $200–$205 million in Gateway reimbursements to be released on a temporary basis.
- Following an emergency conference, federal officials told the states the payments will likely arrive Tuesday due to Treasury processing and the Presidents’ Day holiday.
- U.S. District Judge Jeannette A. Vargas issued a Feb. 6 order blocking USDOT’s funding freeze, finding New York and New Jersey likely to succeed and citing risks from idling major work sites.
- USDOT halted disbursements Sept. 30, 2025 for a DBE compliance review; the states allege political retaliation, while government lawyers warn releasing funds now could be irrecoverable if they prevail.
- Oral arguments on the appeal are scheduled for the week of Feb. 23, and the Gateway Development Commission’s separate breach‑of‑contract case is set for March 12.