Overview
- The Second Circuit declined to stay a Feb. 6 district court order, requiring a short-term release of federal reimbursements for the Hudson Tunnel Project.
- Roughly $205 million is expected to flow to the Gateway Development Commission, allowing construction support to restart after work paused and about 1,000 jobs were affected.
- The relief is temporary as the federal government’s appeal proceeds, with oral arguments scheduled for the week of Feb. 23.
- USDOT froze disbursements in late 2025 for a Disadvantaged Business Enterprise compliance review, prompting New York and New Jersey to sue; the judge found the states likely to succeed and at risk of irreparable harm.
- Separate litigation by the Gateway Development Commission over alleged breach of contract is also pending, with a proceeding expected in March.