President Donald Trump on Wednesday released the remaining $127 million in previously frozen federal reimbursements for the Gateway tunnel project between New York and New Jersey, clearing the way for construction to restart after a court fight over the funding.
The Gateway Development Commission said it has received the full reimbursement it was owed from the federal government and has more than $205 million available for the Hudson Tunnel Project.
"Letters will be sent to contractors today, and construction activities are expected to resume next week," the commission said.
New York and New Jersey sued the Department of Transportation after payments were withheld beginning Oct. 1, and the funding interruption sidelined about 1,000 workers.
The administration released $30 million on Feb. 13, $77 million on Tuesday, and the remaining $127 million on Wednesday.
In a Feb. 2 complaint filed with the U.S. Court of Federal Claims, the Gateway Development Commission said the department had failed to reimburse it by $205.3 million and cited a review tied to the Disadvantaged Business Enterprise program as the reason for suspending payments.
The dispute has unfolded alongside emergency court proceedings in New York federal court.
A temporary restraining order issued Feb. 6 described the project sponsors and warned that work would be halted without resumed federal disbursements.
The Hudson River rail tunnel work is part of the broader Gateway Program and carries an estimated $16 billion cost, according to the Department of Transportation.
The project centers on building new tunnels under the Hudson River and rehabilitating infrastructure on the Northeast Corridor, the nation's busiest passenger rail line.
New Jersey Gov. Mikie Sherrill, a Democrat, called the funding freeze "bewildering and illegal" in remarks released by her office Wednesday.
New York Gov. Kathy Hochul, also a Democrat, said the release was a "major win," according to Reuters.
Trump has criticized the project and raised concerns about potential cost overruns.
The legal fight continues, and CBS News New York reported that an appeals court hearing is set for Monday.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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