Judge orders Trump administration to restore funding for rail tunnel between New York and New Jersey

A federal judge has ordered the Trump administration to restore $16 billion in funding for a critical rail tunnel project between New York and New Jersey, just as construction was about to halt. The ruling, issued Friday by U.S. District Judge Jeannette A. Vargas in Manhattan, grants a temporary restraining order while the states pursue a preliminary injunction to maintain funding throughout their lawsuit.

“The Court is also persuaded that Plaintiffs would suffer irreparable harm in the absence of an injunction,” Judge Vargas wrote in her decision. “Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”

The Gateway Development Commission, which oversees the project, had warned that approximately 1,000 jobs would be immediately lost if work stopped Friday afternoon, with thousands more positions at risk in the future. Following the court’s decision, the commission stated they would “work quickly to restart site operations and get our workers back on the job” once funds are released.

New York Attorney General Letitia James celebrated the ruling as “a critical victory for workers and commuters in New York and New Jersey,” noting the Hudson Tunnel Project’s importance to regional infrastructure. “I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on,” James said in a statement.

The infrastructure project aims to relieve strain on the existing tunnel connecting New York and New Jersey, which is more than 110 years old and serves both Amtrak and commuter trains. Delays in this corridor can create ripple effects throughout the entire East Coast rail network, impacting thousands of travelers daily.

The funding dispute has political undertones. The Trump administration announced the funding pause during a government shutdown earlier this year, with White House officials citing concerns about “unconstitutional spending” related to diversity, equity, and inclusion principles. However, many observers viewed the move as an attempt to pressure Senate Minority Leader Chuck Schumer of New York, a Democrat and vocal critic of the administration.

Adding to the political dimension, there were reports that President Trump might unfreeze the funding if Schumer agreed to rename Penn Station in New York and Dulles International Airport in Virginia after Trump. When questioned about these reports on Air Force One, Trump claimed, “Chuck Schumer suggested that to me, about changing the name of Penn Station to Trump Station.”

Schumer quickly denied this assertion on social media, calling it an “absolute lie” and stating that only Trump could restart the project “with the snap of his fingers.”

During Friday’s court hearing, Shankar Duraiswamy from the New Jersey attorney general’s office emphasized the urgent need for relief, pointing to the literal “massive hole in the earth in North Bergen” where construction has begun. He warned that abandoning the sites, even temporarily, “would pose a substantial safety and public health threat.”

Duraiswamy explained that even a brief stoppage would create significant complications, as laid-off workers would seek employment elsewhere, making quick remobilization difficult if funding were later restored. “Any long-term suspension of funding could torpedo the project,” he cautioned.

The federal government’s representative, Assistant U.S. Attorney Tara Schwartz, dismissed these concerns as a “parade of horribles,” questioning how long the sites could be maintained by the Gateway Development Commission without federal funding.

When pressed by the judge, Duraiswamy estimated the sites could be maintained for a few weeks to possibly a few months, but emphasized that the region would continue to suffer as trains would keep running late due to reliance on the outdated tunnel.

The White House and U.S. Department of Transportation did not immediately respond to requests for comment on Friday night’s ruling.