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Judge Pauses Order Releasing Gateway Funds as Trump Administration Appeals

The pause runs through Thursday, delaying payments a district court deemed unlawfully withheld.

Overview

  • U.S. District Judge Jeannette A. Vargas granted a brief administrative stay of her order until Feb. 12 at 5 p.m., keeping federal reimbursements on hold while the Second Circuit considers the government’s request.
  • Construction on the $16 billion Hudson River tunnel remains halted after funding ran out Friday, and project leaders say roughly 1,000 workers were laid off across five job sites.
  • The administration stopped payments in October, first citing reviews of compliance with new limits on race- and sex-based contracting preferences, with later explanations tied to political disputes.
  • New York and New Jersey sued to force the funds’ release, and the Gateway Development Commission separately seeks about $205 million in reimbursements in the U.S. Court of Federal Claims.
  • Multiple outlets report Trump floated unfreezing the money if Democrats backed renaming Penn Station and Dulles Airport after him, a demand Democrats reject, as unions and officials rally for restoration of funding.