Overview
- The Second Circuit rejected the administration’s request to keep a funding freeze in place, finding no showing of irreparable harm from continued payments.
- Nearly $16 billion in federal reimbursements previously approved by Congress must keep flowing under the ruling.
- The Gateway Development Commission says construction has fully resumed but warns work could pause again in two to three months without ongoing disbursements.
- The administration froze payments last October during a compliance review tied to the president’s executive order restricting diversity, equity and inclusion initiatives.
- In a separate case, a Court of Federal Claims judge deemed GDC’s bid to recoup $205 million moot after funds were restored, left damages claims alive, set a March 24 status conference, and an April 16 hearing is slated in the states’ suit before Judge Jeannette Vargas.