Federal Judge Jeannette Vargas has ordered the Trump administration to resume funding for the $16 billion Gateway project, paving the way for construction work to resume on new Hudson River tunnels. The Manhattan-based judge's decision came in response to a lawsuit filed by New York and New Jersey attorneys general against the federal government, who argued that the White House's order to withhold funds was unlawful and would cause significant economic harm.
The lawsuit claimed that the Trump administration's actions were an attempt to exert pressure on Democrats over immigration policy. Gateway officials had previously announced that work on the project had been paused due to a line of credit being exhausted, but the judge's ruling has now lifted this obstacle.
New Jersey lawyer Shankar Duraiswamy told a Manhattan court that pausing the project would cause irreparable harm, and warned that if the disruption were to drag on, it could "torpedo" the entire project. Gateway officials have previously stated that the tunnel project is crucial for maintaining existing infrastructure, as the old tubes are damaged and need to be closed and repaired.
The decision has been welcomed by state leaders, including New York Governor Kathy Hochul and Attorney General Letitia James. They claimed that the ruling was a victory for thousands of union workers who will build the Gateway and hundreds of thousands of commuters who rely on it daily.
In an unexpected move, it emerged that the White House had previously offered to lift the funding freeze in exchange for Democrats' support for renaming Penn Station and Washington Dulles International Airport after President Trump.
The lawsuit claimed that the Trump administration's actions were an attempt to exert pressure on Democrats over immigration policy. Gateway officials had previously announced that work on the project had been paused due to a line of credit being exhausted, but the judge's ruling has now lifted this obstacle.
New Jersey lawyer Shankar Duraiswamy told a Manhattan court that pausing the project would cause irreparable harm, and warned that if the disruption were to drag on, it could "torpedo" the entire project. Gateway officials have previously stated that the tunnel project is crucial for maintaining existing infrastructure, as the old tubes are damaged and need to be closed and repaired.
The decision has been welcomed by state leaders, including New York Governor Kathy Hochul and Attorney General Letitia James. They claimed that the ruling was a victory for thousands of union workers who will build the Gateway and hundreds of thousands of commuters who rely on it daily.
In an unexpected move, it emerged that the White House had previously offered to lift the funding freeze in exchange for Democrats' support for renaming Penn Station and Washington Dulles International Airport after President Trump.