NEW YORK (AP) — A federal judge ordered the Trump administration to restore funding to a new rail tunnel between New York and New Jersey on Friday, ruling just as construction was set to shut down on the massive infrastructure project.
The decision came months after the administration announced it was halting $16 billion in support for the project, citing the then-government shutdown and what a top federal budget official said were concerns about unconstitutional spending around diversity, equity and inclusion principles.
U.S. District Judge Jeannette A. Vargas in Manhattan approved a request by New York and New Jersey for a temporary restraining order barring the administration from withholding the funds while the states seek a preliminary injunction that would keep the money flowing while their lawsuit plays out in court.
“The Court is also persuaded that Plaintiffs would suffer irreparable harm in the absence of an injunction,” the judge wrote. “Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”
The White House and U.S. Department of Transportation did not immediately respond to emails seeking comment Friday night.
New York Attorney General Letitia James called the ruling “a critical victory for workers and commuters in New York and New Jersey.”
“I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on,” James said in a statement. “The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”
The panel overseeing the project, the Gateway Development Commission, had said work would stop late Friday afternoon because of the federal funding freeze, resulting in the immediate loss of about 1,000 jobs as well as thousands of additional jobs in the future.
It was not immediately clear when work would resume. In a nighttime statement, the commission said: “As soon as funds are released, we will work quickly to restart site operations and get our workers back on the job.”
The new tunnel is meant to ease strain on an existing, over 110-year-old tunnel that connects New York and New Jersey for Amtrak and commuter trains, where delays can lead to backups up and down the East Coast.
New York and New Jersey sued over the funding pause this week, as did the Gateway Development Commission, moving to restore the Trump administration's support.
The suspension was seen as way for the Trump administration to put pressure on Democratic Senate Minority Leader Chuck Schumer of New York, whom the White House was blaming for a government shutdown last year. The shutdown was resolved a few weeks later.
Speaking to the media on Air Force One, Trump was asked about reports that he would unfreeze funding for the tunnel project if Schumer would agree to a plan to rename Penn Station in New York and Dulles International Airport in Virginia after Trump.
“Chuck Schumer suggested that to me, about changing the name of Penn Station to Trump Station. Dulles Airport is really separate,” Trump responded.
Schumer responded on social media: “Absolute lie. He knows it. Everyone knows it. Only one man can restart the project and he can restart it with the snap of his fingers.”
At a hearing in the states' lawsuit earlier in Manhattan, Shankar Duraiswamy, of the New Jersey attorney general’s office, told the judge that the states need “urgent relief” because of the harm and costs that will occur if the project is stopped.
“There is literally a massive hole in the earth in North Bergen,” he said, referring to the New Jersey city and claiming that abandoning the sites, even temporarily, “would pose a substantial safety and public health threat.”
Duraiswamy said the problem with shutting down now is that even a short stoppage would cause longer delays because workers will be laid off and go off to other jobs and it’ll be hard to quickly remobilize if funding becomes available. And, he added, “any long-term suspension of funding could torpedo the project.”
Tara Schwartz, an assistant U.S. attorney arguing for the government, disagreed with the “parade of horribles” described by attorneys for the states.
She noted that the states had not even made clear how long the sites could be maintained by the Gateway Development Commission. So the judge asked Duraiswamy, and he said they could maintain the sites for a few weeks and possibly a few months, but that the states would continue to suffer irreparable harm because trains would continue to run late because they rely on an outdated tunnel.
Collins reported from Hartford, Connecticut.
FILE - A tunnel is under construction in Manhattan that will connect New York and New Jersey Oct. 2, 2025, in New York. (AP Photo/Ted Shaffrey, File)
