Judge bars Trump from blocking funding for Hudson River tunnel
A federal judge blocked the trump management from withholding funding for the $16 billion Gateway Tunnel project between New Jersey and New York, ruling that the move was arbitrary and violated federal regulations. The judge, Jeannette Vargas, criticized the administration’s decision as influenced by political motives rather than compliance wiht nondiscrimination laws. The project, which began construction in late 2023 and aims to be completed by 2035, recently received a $6.8 billion federal grant under the Biden administration. Previously, the Trump administration had frozen over $205 million in funding citing concerns over the project’s use of diversity, equity, and inclusion practices, which the Department of Transportation deemed unconstitutional. The court’s decision affirms that the suspension was unjustified and tied to political bias, with Vargas noting that former President Trump’s statements suggested the funding freeze was motivated by opposition to Democrats.The Gateway Tunnel is a critical infrastructure link, carrying over 200,000 daily riders on the Northeast Corridor. Despite conflicts over funding and legal disputes, construction efforts proceed, supported by notable federal investment.
A federal judge blocked the Trump administration on Monday from blocking federal funding for the Gateway Tunnel project, ruling that its move to do so last year was arbitrary and capricious.
U.S. District Court Judge Jeannette Vargas’s decision surrounds the $16 billion Gateway Tunnel plan to build two new rail tunnels underneath the Hudson River between New Jersey and New York. The Transportation Department halted roughly $205 million in federal funding for the project in October, amid criticisms that it used “unconstitutional” diversity, equity, and inclusion practices, and faced cost overruns and delays.
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Vargas weighed in again on the debacle this week, writing that the suspension was a violation of the Administrative Procedure Act, and that “defendants make no attempt to justify their actions as consistent with the governing federal regulations.” She suggested that President Donald Trump’s freeze was tied to his dislike of Democrats such as Senate Minority Leader Chuck Schumer (D-NY), not concerns about DEI. Her rebuke comes after the administration was forced to unfreeze that funding in February due to an order from Vargas. The judge’s Monday ruling is a permanent extension of that order.
“The ostensible reason for the suspension of funds was to allow DOT to conduct a review of GDC’s compliance with federal nondiscrimination laws. President Donald J. Trump, however, made contemporaneous statements indicating that he had personally made the decision to ‘terminate’ funding for the Project ‘because the Democrats are so foolish – what they’ve done to the country,’” the ruling reads.
The long-delayed Gateway Tunnel project to upgrade infrastructure between New Jersey and Penn Station in Midtown has been in the works since 2010. Major construction began in late 2023, and the project is not set to be completed until 2035.
In July 2024, the Biden administration handed it a $6.8 billion federal grant, marking the most money ever provided to a mass transit infrastructure project in the United States. The Hudson River tunnel is a critical link on the Northeast Corridor, carrying more than 200,000 daily riders.
Transportation Secretary Sean Duffy announced in October that roughly $205 million in federal funding would be on ice, expressing concern that the project was using “unconstitutional” diversity, equity, and inclusion practices. The department said it would conduct an administrative review of the project to ensure compliance with a rule “barring race- and sex-based contracting requirements from federal grants.”
“Secretary Duffy’s position on the [Disadvantaged Business Enterprise] program is clear – subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources,” the Transportation Department said.
The move triggered a pause in construction and a lawsuit from New York and New Jersey in February.
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In response to a court order that month, the Trump administration was forced to release the first $30 million in frozen funding. On Feb. 18, the Trump administration released the remaining $127 million.
At the time, Trump complained he was opposed to the project because it “cost many BILLIONS OF DOLLARS more than projected or anticipated.” The president has declared that the federal government would not cover any excess expenses beyond existing commitments.
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