US judge unfreezes funding for massive New York and New Jersey rail tunnel project

A federal judge ordered the release of frozen funds for the Gateway Project. The ruling prevents a construction halt on the critical rail tunnel between states.

U.S. District Judge Jeannette Vargas jeannette vargas in Manhattan has ordered the unfreezing of federal funds for the $16 billion Gateway Project, reversing a decision by the administration of Donald Trump donald trump to withhold critical reimbursements. The ruling, delivered in the U.S. District Court (Manhattan), prevents an immediate work stoppage on the construction of a new commuter rail tunnel between Manhattan and New Jersey and essential repairs to the existing Hudson Tunnel. The court’s decision came just hours after the States of New York and New Jersey warned that construction would be forced to halt due to a lack of funding.
A construction crew works on the Manhattan Tunnel Project, part of the Hudson Tunnel Project, in New York City, U.S., October 1, 2025. The U.S. government has paused funding for major transit projects, including the Hudson Tunnel and Second Avenue Subway, while the Department of Transportation reviews small-business contractor involvement. FILE PHOTO:
A construction crew works on the Manhattan Tunnel Project, part of the Hudson Tunnel Project, in New York City, U.S., October 1, 2025. The U.S. government has paused funding for major transit projects, including the Hudson Tunnel and Second Avenue Subway, while the Department of Transportation reviews small-business contractor involvement. FILE PHOTO:
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