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Court Ruling Keeps Gateway Tunnel Project on Track in New Jersey, New York

New Jersey

By: Richard L. Smith 

A federal court has temporarily blocked the Trump administration from freezing federal funding for the multi-billion-dollar Gateway Tunnel project, delivering a major reprieve for the infrastructure plan that would expand critical rail capacity between New Jersey and New York.

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In a statement following the ruling, New Jersey Acting Attorney General Jennifer Davenport said, “As the court correctly recognized, the Trump Administration’s attempts to freeze funding for the Gateway Tunnel project are plainly illegal, and they would cause grave harm to New Jersey and New York… The order issued this evening should ensure that nearly 1,000 workers will be able to keep their jobs and continue their work on the Tunnel, preserving the investments New Jersey and New York have made in this project and preventing further economic damage to our states while next steps in the case play out.” 

She added that the administration must “drop this campaign of political retribution immediately and must allow work on this vital infrastructure project to continue,” and pledged to keep fighting in court on behalf of residents. According to the official statement.


 

According to Reuters, the court’s temporary restraining order comes amid a lawsuit filed by New Jersey and New York to force the release of $16 billion in federal funds, which had been withheld by the Trump administration, a move the states argued was unlawful and would halt construction and jeopardize jobs. 

 

U.S. District Judge Jeannette Vargas ruled that the funding freeze likely violated legal procedures and would cause “irreparable harm” if allowed to stand while the lawsuit proceeds, effectively restoring nearly all federal support for the project for now. 


 

The Gateway project, long seen as one of the most important U.S. infrastructure initiatives, involves building a new rail tunnel under the Hudson River and rehabilitating an existing century-old tunnel essential to Amtrak and commuter rail service. 
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Without federal funding, the project threatened to halt construction and cost jobs, prompting the emergency court action by state officials.