Gateway rail tunnel’s funding on ice again, judge rules

By Chris Marquette | 02/10/2026 12:21 PM EST

Funding for the Hudson River project will remain frozen until at least Thursday as court battles drag on.

The Trump administration’s freeze on federal funds for the now-stalled Gateway rail tunnel project can continue until at least Thursday, a federal judge ruled Monday.

The federal Department of Transportation, led by Secretary Sean Duffy, appealed a decision last week from U.S. District Judge Jeannette Vargas, who ruled the funds should be disbursed to continue the critical infrastructure project. Vargas is now keeping things in a holding pattern until a separate ruling emerges from the 2nd U.S. Circuit Court of Appeals.

Vargas issued a short administrative stay, which permits the Trump administration time to ask for the appellate court to decide on its request. DOT did not immediately respond to a request for comment.

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If the appellate court grants a longer hold on the funds before Thursday, then Trump’s federal funding freeze on Gateway will continue. If not, Vargas’ initial decision to release the funds takes effect at 5 p.m., and DOT has to turn over the money to Gateway.

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