A federal judge ruled Friday that the Trump administration must restore funding to the Gateway project, just as construction was set to shut down on the massive $16 billion infrastructure project.
The Trump administration had announced last year it was halting funding for the project, a new rail tunnel between New York and New Jersey, citing the government shutdown at the time and 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 the Department of Transportation did not immediately respond to emails seeking comment Friday night.
Kathy Hochul and Mikie Sherrill, the governors of New York and New Jersey, respectively, cheered the ruling.
"Today, a judge affirmed what we've said from the start: our case against the Trump Administration is likely to succeed, and Donald Trump's attempt to rip away funding and derail the Gateway Tunnel project is likely to be found unlawful," Hochul said in a statement.
"I am thrilled that the court has granted temporary relief, lifting the freeze of billions of dollars of federal funding for Gateway," Sherrill said.
"President Trump's arbitrary and politically motivated decision to freeze this funding is plainly illegal, and we will continue to pursue full relief so the nation's most urgent transportation project can keep moving forward — and workers can keep putting food on the table," Sherrill added.
The Gateway Development Commission, which is overseeing the project, warned that halting construction would result in the immediate loss of about 1,000 jobs.
The project is meant to ease strain on an 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 White House said last week that Democrats "are standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration."
"There is nothing stopping Democrats from prioritizing the interests of Americans over illegal aliens and getting this project back on track," the White House added.
The Associated Press contributed to this report.
Sam Barron ✉
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