(NEW YORK, February 8, 2026) – A Manhattan federal judge on Friday ordered the Trump administration to unfreeze funding for the Gateway Program, clearing the way for work to resume on a new set of Hudson River tunnels.
A federal judge’s order allows the Gateway Program, a critical infrastructure project, to move forward after funding was paused by the Trump administration.
- Judge Jeannette vargas of the U.S. District Court for the southern District of New York issued the order.
- The lawsuit was brought by the attorneys general of New York and New Jersey.
- The Gateway project, valued at $16 billion, had more than 1,000 jobs put on hold.
- the White House had reportedly offered to unlock funding in exchange for renaming transportation hubs after former President Trump.
Funding Freeze Challenged
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The order came in response to a lawsuit filed by the New York and New Jersey attorneys general, who argued the white House’s decision to withhold funds was illegal and caused economic harm, according to court documents.
judge Vargas wrote that “Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project,” and barred the federal government from suspending funding while the case proceeds.
New Jersey lawyer Shankar Duraiswamy argued before the ruling that pausing the project would cause “irreparable harm” and could “torpedo the project” if prolonged.
Federal Government’s Opposition
The federal government contended that the case should be heard in a federal claims court in Washington,D.C., rather than in Manhattan. Gateway officials have also filed a lawsuit in the D.C. court, wiht a hearing scheduled for Tuesday.
Project Details and Impact
The $16 billion Gateway project is one of the largest public works projects in the United States. The funding freeze put more than 1,000 jobs on hold, and occurred during a dispute between the Trump administration and Democrats over immigration policy, according to reporting from Gothamist.
Governor Kathy Hochul of New York stated, “This ruling is a victory for the thousands of union workers who will build Gateway and the hundreds of thousands of riders who rely on it every day. We will work to protect this decision and move quickly to get work back on track.”
White House Proposal
On Friday, it was reported that the White House had proposed unlocking Gateway funding in exchange for Democratic support in renaming Penn Station and Washington Dulles International Airport after former President Trump.
Logistical Challenges of Suspension
The Gateway commission stated in court filings that halting operations at five construction sites would be a meaningful undertaking, requiring nearly a year of work and $15 million to $20 million per month to secure the sites and store equipment, including a $500 million boring machine.
Gateway paused work Friday morning after exhausting a line of credit. The new tunnels are intended to serve NJ Transit and Amtrak trains traveling to and from Penn Station, and are necessary to allow for the repair of the existing tunnels damaged by Hurricane sandy in 2012.
Reactions to the Ruling
New York Attorney General Letitia james said, “this is 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.”
Time.news based this report in part on reporting by Gothamist and added autonomous analysis and context.
