A federal judge on Friday evening ordered the White House to resume funding of Gateway, a monumental rail tunnel project connecting New Jersey and Manhattan. The administration froze funding for the project in September, and construction began to wind down today, but a lawsuit from New Jersey and New York was, for now, successful in reopening the spigot.
The order, handed down by District Judge Jeannette A. Vargas, found that the states could face serious harm if the pause in funding were to continue. The temporary restraining order requires the Trump administration to resume funding while the lawsuit is adjudicated.
“We are grateful that the court agreed to put a halt to this unlawful freeze on this emergency basis,” acting Attorney General Jennifer Davenport said in a statement. “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.”
To successfully win a restraining order, New Jersey and New York must have shown that they could win the case on the merits and that they would face “irreparable harm” if the freeze continued. The states argued an extended construction freeze could cost them hundreds of millions in the long run, and Vargas agreed.
In September, the Trump administration froze funding for the $16 billion bipartisan project to review “unconstitutional DEI principles,” but did little to specify what exactly was under review. Leaders of the project, known as Gateway, looked to the Trump administration for guidance, but they say no such guidance came.
The White House has not returned multiple requests for comment.
The Gateway Development Commission, a bi-state agency leading the construction efforts, received a line of credit that lasted months, but funds finally ran out today. At 5 p.m., workers halted construction. The court’s restraining order came less than three hours later.
The White House’s lawyers argued the states’ lawsuits should have been brought in the Court of Federal Claims, not a federal district court. In fact, the GDC filed a lawsuit in the Court of Federal Claims earlier this week, and a status conference in the case is scheduled for next week.
On Thursday, Punchbowl News reported that President Donald Trump told Senate Minority Leader Chuck Schumer that he would release the funding if Schumer helped rename Dulles International Airport in D.C. and New York’s Penn Station after Trump. Schumer declined.
Vargas’ ruling ordered the states and the Trump administration to file a joint letter detailing the next steps in the case by Wednesday. The letter must include a briefing schedule for the White House’s motion to dismiss the case, based on its argument that the states filed in the wrong court.
Gov. Mikie Sherrill, Senator Cory Booker, and several Democratic members of New Jersey’s congressional delegation met in a construction yard on Friday morning to make their case. A shutdown in construction would mean 1,000 union workers would instantly face layoffs, and another 11,000 construction jobs could be at risk further down the line.
“The Trump Administration must drop this campaign of political retribution immediately and must allow work on this vital infrastructure project to continue,” Davenport said. ”If not, I pledge to keep fighting in court on behalf of all New Jerseyans.”
This story is developing and will be updated.
