Trump admin must unfreeze Gateway funds, federal judge orders

By Pavan Acharya | 02/09/2026 12:52 PM EST

The ruling comes on the day the Hudson River rail tunnel shut down construction due to lack of funds.

A tunnel is under construction in Manhattan.

A tunnel is under construction in Manhattan that will connect the new $18 billion Hudson River rail tunnel to New York Penn Station on Oct. 2, 2025, in New York. Ted Shaffrey/AP

A federal judge on Friday night ordered the Trump administration to unfreeze billions of dollars in funding for the Gateway rail tunnel project, a win for New York and New Jersey.

The ruling from U.S. District Judge Jeannette Vargas of the Southern District of New York said that “plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”

The judge ordered both sides to meet and submit a joint letter addressing about a half-dozen legal issues about the case by Feb. 11.

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Neither the U.S. Department of Transportation nor the White House immediately responded to a request for comment.

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