Trump administration has until Thursday to resume funding for Gateway Tunnel project

Monday, February 9, 2026
Trump fights to freeze Gateway Tunnel funds

NEW YORK -- A federal judge is giving the Trump administration until Thursday to resume payments for the Gateway Tunnel project.

U.S. District Judge Jeannette Vargas issued an administrative stay of her order requiring the Trump administration unfreeze the payments, giving the government until Feb. 12 at 5 p.m. to ask an appeals court to lift her order.

While she gave the Trump administration a few extra days to appeal, she denied their request to further delay her own order from Friday requiring payments resume.

Judge Vargas said New York and New Jersey have "demonstrated that the shutdown will have an immediate and severe impact."

"Substantial delays could lead to the loss of up to 95,000 jobs," she wrote. "A prolonged shutdown is also predicted to result in the loss of $7.3 billion in annual GDP associated with completion of the Hudson River Project."

The Gateway Tunnel Commission has argued access to federal funding would allow work to quickly restart and get workers back on on the job.

Friday's decision came as construction was about to stop due to a funding freeze.

The Trump administration had halted $16 billion for the project that will build a new rail tunnel between New York and New Jersey, citing concerns about unconstitutional spending.

Vargas approved the temporary restraining order to keep the funds flowing while the case plays out in court.

The project aims to ease strain on an over 110-year-old tunnel connecting the two states, crucial for Amtrak and commuter trains.

(The Associated Press contributed to this report.)

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