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Judge Orders Trump Administration to Restore Funding for Rail Tunnel Between New York and New Jersey

Judge Jeannette A. Vargas blocked the Trump administration's suspension, allowing nearly 1,000 jobs to continue on the $16 billion Gateway Tunnel project connecting New York and New Jersey.

  • On Friday, U.S. District Judge Jeannette A. Vargas in Manhattan ordered the Trump administration to restore funding for the Gateway/Hudson rail tunnel as the lawsuit proceeds.
  • The Trump administration had suspended $16 billion in support months earlier, citing the government shutdown and diversity, equity and inclusion contract review, while reports say top officials linked funding release to naming requests involving Senator Chuck Schumer, Democrat of New York.
  • By Friday morning, nearly 1,000 workers were on site at four locations where activity was winding down after more than $1 billion was spent, while barges drove `king piles` into the river at North Bergen, raising safety concerns.
  • Judge Vargas concluded the plaintiffs would suffer irreparable harm without an injunction if operations stopped, while Shankar Duraiswamy urged urgent relief, warning `any long-term suspension of funding could torpedo the project` and filings noted harm to the public interest and unclear maintenance timelines.
  • If the administration complies, the project could soon restart, as the commission's breach suit seeks over $200 million and aims to ease delays on the over 110-year-old tunnel connecting New York and New Jersey.
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Judge orders Trump administration to restore funding for rail tunnel between New York and New Jersey

A federal judge has ordered the Trump administration to restore funding for a new rail tunnel between New York and New Jersey.

·United States
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Bloomberg broke the news in United States on Friday, February 6, 2026.
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