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Trump Administration Appeals Order Restoring Gateway Tunnel Funds as Work Remains Paused

A stay request before the Second Circuit leaves disbursements uncertain despite a judge’s directive to release up to $200 million.

Overview

  • U.S. District Judge Jeannette A. Vargas issued a temporary restraining order Friday directing the government to reinstate funding for the $16 billion Hudson/Gateway tunnel after New York and New Jersey sued.
  • The administration filed an appeal Sunday and on Monday sought an emergency stay, arguing it could be forced to pay up to $200 million that might not be recoverable if it prevails.
  • Construction largely remains halted and roughly 1,000 workers are off the job, with project officials saying they will remobilize once federal payments actually resume.
  • USDOT says the freeze stemmed from a review of contracting practices under new prohibitions on race- and sex-based considerations, a rationale the Gateway Development Commission says it has addressed.
  • Reports say Trump linked releasing funds to renaming Penn Station and Dulles Airport after him, a claim Schumer rejects as false and Democratic leaders publicly criticize, as related litigation and contract disputes continue.