Overview
- U.S. District Judge Jeannette Vargas issued a permanent order Monday that the Trump administration’s October halt to Gateway funding was arbitrary and unlawful under the Administrative Procedure Act.
- The Department of Transportation put roughly $205 million on hold last fall while alleging the project used unconstitutional diversity and contracting practices, a review the judge found procedurally unjustified.
- Vargas cited public remarks by President Trump indicating political motives for the freeze, including comments about cutting a project tied to Senator Chuck Schumer.
- The court’s decision restores federal support and has allowed work to continue and workers to return after a pause and layoffs that state officials said affected about 1,000 jobs.
- The ruling does not bar the government from seeking a lawful suspension or appealing, but it requires the administration to follow specific grant rules and procedures before withholding funds in the future.