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)
WASHINGTON (AP) — The Trump administration on Thursday loosened federal rules that require grocery stores and air-conditioning companies to reduce greenhouse gases used in cooling equipment, a step President Donald Trump said would help lower grocery costs.
Trump, at a White House ceremony, said the action by the Environmental Protection Agency would “substantially lower costs for consumers” by delaying costly restrictions that limit the type of refrigerants U.S. businesses and families can use.
The move to relax the Biden-era rules on harmful pollutants known as HFCs emitted by refrigerators and other appliances was the latest attempt by the Trump administration to try to address rising voter concerns over the cost of living ahead of pivotal elections in November.
It is not clear how much or how quickly the loosening of the refrigerant rule might impact grocery prices. Industry groups said the move could even raise prices because manufacturers have already redesigned products, retooled factories and trained workers to build and service next-generation refrigerant equipment.
Inflation in the United States increased to 3.8% annually in April, amid price spikes caused by the Iran war and President Donald Trump’s sweeping tariffs. Inflation is now outpacing wage gains as the war has kept oil and gasoline prices high.
The Biden-era regulation was “unnecessary and costly and actually makes the machinery worse,” Trump said at a ceremony joined by top executives from Kroger, Piggly Wiggly and other grocery chains. The EPA action will protect hundreds of thousands of jobs and save Americans more than $2 billion a year, he said.
The Air-Conditioning, Heating and Refrigeration Institute, which represents more than 330 HVAC manufacturers and commercial refrigeration companies, said the change in approach would “inject uncertainty across the market” and could even raise prices.
“This rule works against basic supply and demand,” said Stephen Yurek, the group’s president and CEO. “By extending the compliance deadline” for phasing out hydrofluorocarbons, or HFCs, the administration “is maintaining and even increasing demand in the market for existing refrigerants while supply continues to fall.”
Manufacturers have already retooled product lines and certified models based on the existing timeline, Yurek said. Nearly 90% of residential and light commercial air conditioning systems use substitute refrigerants, rather than HFCs, he said.
The administration's action on refrigerants represents a reversal after Trump signed a law in his first term that aimed to reduce harmful, planet-warming pollutants emitted by refrigerators and air conditioners. That bipartisan measure brought environmentalists and major business groups into rare alignment on the contentious issue of climate change and won praise across the political spectrum.
The 2020 law reflected a broad bipartisan consensus on the need to quickly phase out domestic use of HFCs, greenhouse gases that are thousands of times more potent than carbon dioxide and are considered a major driver of global warming.
The EPA action highlights the second Trump administration’s drive to roll back regulations perceived as climate friendly. The plan is among a series of sweeping environmental changes that EPA Administrator Lee Zeldin has said will put a “dagger through the heart of climate change religion.”
Environmentalists criticized the administration’s actions, saying the new rule would exacerbate climate pollution while disrupting a yearslong industry transition to new coolants as an alternative to HFCs.
The 2020 law signed by Trump, known as the American Innovation and Manufacturing Act, phased out HFCs as part of an international agreement on ozone pollution. The law accelerated an industry shift to alternative refrigerants that use less harmful chemicals and are widely available.
The U.S. Chamber of Commerce and the American Chemistry Council, the top lobbying group for the chemical industry, were among numerous business groups that supported the law and an international deal on pollutants, known as the Kigali Amendment, as victories for jobs and the environment. U.S. companies such as Chemours and Honeywell developed and produce the alternative refrigerants sold in the United States and around the world.
The 2023 rule now being relaxed imposed steep restrictions on HFCs starting in 2026. Zeldin said the rule from the Democratic Biden administration did not give companies enough time to comply and that the rapid switch to other refrigerants caused shortages and price increases last year. Some in the industry dispute this.
The Food Industry Association, which represents grocery stores and suppliers, applauded the Trump EPA proposal last year, saying the earlier rule “imposed significant and unrealistic compliance timelines.”
Kevin McDaniel, Piggly Wiggly franchise owner, speaks during an event with President Donald Trump about loosening a federal refrigerant rule, in the Oval Office at the White House, Thursday, May 21, 2026, in Washington. (AP Photo/Jacquelyn Martin)
Kroger CEO Greg Foran speaks speaks during an event with President Donald Trump about loosening a federal refrigerant rule, in the Oval Office at the White House, Thursday, May 21, 2026, in Washington. (AP Photo/Jacquelyn Martin)
Lee Zeldin, Environmental Protection Agency administrator, listens as President Donald Trump speaks during an event about loosening a federal refrigerant rule, in the Oval Office at the White House, Thursday, May 21, 2026, in Washington. (AP Photo/Jacquelyn Martin)
President Donald Trump speaks during an event about loosening a federal refrigerant rule, in the Oval Office at the White House, Thursday, May 21, 2026, in Washington. (AP Photo/Jacquelyn Martin)
FILE - A shop owner reaches into a drink display refrigerator at his convenience store in Kent, Wash., Oct. 1, 2018. (AP Photo/Elaine Thompson, File)
