Halting Gateway tunnel finding was 'contrary to law,' federal judge rules
By: Colleen Wilson
NorthJersey.com
USA Today Network - New Jersey
..... A federal judge has sided with New Jersey and New York, saying the Trump administration's decision t suspend payments for construction of the Hudson River rail tunnels was "contrary to law."
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"We are grateful that a federal court has once again agreed that the Trump administration's decision to freeze billions of dollars in grants for the Gateway Tunnel Project is flagrantly unlawful," said a statement praising the June 29 [2026] decision from New Jersey Governor Mikie Sherrill and New York Governor Kath Hochul, both of whom directed their attorneys general to sue the U.S. Department of Transportation in February. [2026]
..... "This victory sends a clear message: the Trump administration's attempt to halt Gateway funding will not stand," the statement continued.
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In response to an email seeking comment about whether it will appeal the decision, written by Judge Jeannette Vargas, a response arrived from an unnamed person through the generic U.S. Transportation Department press office that said, "USDOT remains committed to ensuring hardworking taxpayers dollars are being spent responsibly and do not fund unconstitutionality discriminatory nonpracticing practices."
..... This case stems form the department's September 30 [2025] decision to pause federal reimbursements to the Gateway Development Commission, the bistate agency leading the $16 billion tunnel project. while that funding was paused, the Gateway commission tapped a line of credit to pay contractors, salaries and other expenses while it tired to work with the DOT on its concerns about a minority contract program, although President Donald Trump made multiple comments and posts that his intention was to end the constructions projects to retaliate against Democrats. Multiple projects were also delayed, an outcome that could extend the timeline of the 15-eyar program.
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The DOT never issued a conclusion to the inquiry, and the Gateway commission eventually ran out of money in February, [2026] forcing it to shut down its constructionist sites and lay off nearly 1,000 workers. That's when the two states sued and the Gateway commission bought a separate lawsuit in the Court of Federal Claims, which is ongoing.
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In the latter case, the Gateway commission can seek to recoup money from the federal government for the tens of thousands in expenses it incurred from having to shut down and secure the construction sites and interest on a line of credit.
..... "Our case has always been about seeking prospective relief - to end the unlawful funding freeze and get workers back on the job. The Gateway Development Commission has a separate case about money damages, and we defer any questions on seeking damages to them," said Michael Symons, a spokesman for the New Jersey Attorney General's Office.