As the legal battle over the Gateway tunnel project continues to unfold, a federal appeals court on Wednesday rejected the Trump administration’s attempt to reinstate its funding freeze of the project.
After a federal judge ordered the White House to resume funding the $16 billion rail project temporarily, the U.S. Department of Transportation filed an emergency appeal. But the three-judge panel from the U.S. Court of Appeals for the Second Circuit found that a resumption in funding as the case moves through the courts does not constitute “irreparable damage” for the Trump administration.
“In sum, because DOT has failed to demonstrate irreparable harm or any other circumstances warranting a stay pending appeal, its motion for such a stay is DENIED,” the judges wrote.
New Jersey and New York filed the suit last month; the White House froze funding for Gateway, a monumental project between New Jersey and Manhattan, last fall. The Trump administration has offered various reasons for the move.
Acting Attorney General Jennifer Davenport lauded the court’s decision in a statement.
“We’re thrilled that the Second Circuit has rejected DOT’s emergency efforts to put back in its political and unlawful funding freeze of the Gateway project,” Davenport said. “Because the injunction we secured remains in place, the project is back on track and workers are back on the job.”
The Gateway Development Commission, a bi-state agency that operates Gateway’s construction, filed a separate suit to unfreeze funding in the Court of Federal Claims. The Second Circuit judges said they expect a ruling in that case on Thursday.
The GDC said Tuesday that construction had fully resumed. They said construction could continue for another two to three months before more federal money is needed.
“The Hudson Tunnel Project is the most urgent passenger rail project in the country, and GDC’s mission is to deliver it as soon as possible,” said GDC CEO Tom Prendergast. “Our workers are back, and we are moving full steam ahead across all our construction sites, but we will have no choice but to stop work again if the federal government does not continue to disburse the funds that are committed to the project
