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Appeals court won’t let Trump freeze Gateway tunnel funding, for now

The 2nd Circuit Court upheld a lower court's order to release $205 million, ensuring temporary funding for 1,000 halted construction jobs on the Gateway Tunnel project.

  • On Thursday, the 2nd U.S. Circuit Court of Appeals declined to block U.S. District Court Judge Jeannette A. Vargas's order, effectively reinstating the funding flow to the project. The case is referred to a full panel the week of February 23.
  • The Trump administration froze Gateway funding last fall, citing policy changes, while critics pointed to political leverage and alleged demands to rename transit hubs.
  • The 2nd Circuit's order specifically affects $200 million owed to the project, and GDC expects to receive $205 million in past-due federal disbursements, as of Thursday.
  • Gateway's $500 million backup credit ran dry on Feb. 6, halting construction and leaving 1,000 displaced workers and thousands affected on five projects, slowing tunneling through the Palisades this year.
  • The reinstatement is temporary as appeals motions wind through the Second Circuit; the court referred the case to a full panel the week of February 23, and the states plan a Feb. 20 brief seeking an extension.
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New York, Feb 13 (EFE).- Donald Trump's government said this Friday that it will soon re-establish the funds paralysed for a railroad project between New York and New Jersey following a court order propitiated by the demands of both states. Government lawyers told Judge Jeannette Vargas that about $205 million in federal funds for the Gateway railway project are being approved and will reach the two affected states next week, according to local …

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Reuters broke the news in United Kingdom on Thursday, February 12, 2026.
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