A federal judge in Manhattan, Jeannette A. Vargas, issued a temporary restraining order on Friday, February 6, 2026, compelling the Trump administration to release $205 million in federal funding for the approximately $16 billion Gateway Tunnel project. This decision came hours before construction on the critical rail infrastructure project was scheduled to halt due to the funding freeze. The project, designed to build a new commuter rail tunnel under the Hudson River and repair an existing century-old tunnel damaged by Hurricane Sandy in 2012, serves more than 200,000 travelers and 425 trains daily.
The judge's ruling stated that New York and New Jersey were likely to succeed in their claims that the Trump administration's directive to freeze funds was arbitrary and violated legal procedures for policy changes. The administration had withheld the $205 million since October 1, 2025, and had previously cited concerns about compliance with new prohibitions against race- and sex-based considerations in contracting decisions. Reports also indicated that Trump had allegedly demanded landmarks like Washington Dulles Airport and Penn Station be renamed for him in exchange for releasing the funds, drawing criticism from Democrats.
Lack of funding threatened to idle 1,000 construction workers immediately and potentially thousands more in the future. The Gateway Development Commission, overseeing the project, highlighted the endangerment of passengers relying on "decaying, century-old rail infrastructure" if the project stalled. The judge emphasized that the states would suffer "irreparable harm" without the injunction and that a delay would harm the public interest in a critical infrastructure project. The court has requested both parties to provide additional information and a joint letter by February 11, 2026, regarding the preliminary injunction hearing.
