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A federal judge on Friday blocked President Trump from freezing $16 billion in funds for the massive Gateway tunnel project in New York and New Jersey.
Judge Jeannette Vargas of the Southern District of New York ordered the Trump administration to release funds earmarked for the Hudson River rail tunnel – which would connect New York and New Jersey – on the same day construction on the project came to a screeching halt.
“Plaintiffs have adequately demonstrated that they would imminently suffer such loss if [the Gateway Development Commission] is forced to shut down its operations,” Vargas, an appointee of former President Joe Biden, wrote in her 11-page order.
New York, New Jersey and the Gateway Development Commission (the entity responsible for building the tunnel) sued Trump over the funding freeze earlier this week.
A line of credit that had allowed construction to continue in the wake of Trump’s decision to pause funding last October had run dry Friday.
“This is a critical victory for workers and commuters in New York and New Jersey,” New York Attorney General Letitia James said in a statement. “I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on.
“The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”
New Jersey Democratic Gov. Mikie Sherrill noted the court granted “temporary relief” and vowed to continue the legal battle with Trump as the litigation plays out.
“Trump’s decision to freeze this funding is illegal, and we’ll continue to pursue full relief so the nation’s most urgent transportation project keeps moving forward,” Sherrill wrote on X.
Trump froze a combined $18 billion in funding for the Gateway tunnel and New York’s Second Avenue subway project last October – on the first day of the record-breaking, 43-day-long government shutdown.
The funds were approved by the federal government in 2021 and construction on the tunnel began in 2023. It’s not expected to be completed until 2035.
Trump offered to restore the funds during negotiations with Senate Minority Leader Chuck Schumer (D-NY) last month in exchange for renaming New York’s Penn Station and Washington’s Dulles International Airport after him, a source familiar with the discussion told The Post.
However, Schumer reportedly told Trump that he didn’t have the authority to fulfill the unusual request, according to CNN.
“Chuck Schumer suggested that to me about changing the name of Penn Station to Trump Station,” Trump told reporters aboard Air Force One.
The senator vehemently denied the president’s claim.
“Absolute lie. He knows it. Everyone knows it,” Schumer wrote on X. “Only one man can restart the project and he can restart it with the snap of his fingers.”
Work stoppage on the tunnel due to the frozen funds was expected to result in the immediate loss of nearly 1,000 jobs, according to the Gateway Development Commission.
The White House did not immediately respond to The Post’s request for comment.
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