Court Rules Against
Gateway Tunnel Funding Freeze
NEW YORK— U.S. District Court Judge Jeannette Vargas on Monday permanently barred the Trump Administration from freezing federal funding for the $16-billion Gateway Tunnel project.
The Jersey Monitor reported that Judge Vargas’ decision extends into perpetuity a temporary restraining order she granted to New Jersey and New York in February when she ruled the freeze of funding for the new Gateway tunnels by the US Department of Transportation was likely illegal.
The month-long freeze in federal funding by the Trump Administration caused a costly work stoppage earlier this year. “Defendants do not dispute that the suspension of federal grants flagrantly violates federal law,” the judge wrote.
New York Attorney General Letitia James, New York Gov. Kathy Hochul, New Jersey Gov. Mikie Sherill, and New Jersey Attorney General Jennifer Davenport released a joint statement in reaction to the permanent order blocking the Trump administration from freezing federal grants for the Gateway Project:
“We are thrilled that a federal court has once again agreed that the Trump administration’s decision to freeze billions of dollars in grants for the Gateway Tunnel Project is flagrantly unlawful. This is the most important infrastructure project in the nation, and thanks to our litigation, 1,000 people are back on the job and construction continues every day. This victory sends a clear message: the Trump administration’s attempt to halt Gateway funding will not stand,” the statement read.
New York and New Jersey sued the administration on Feb. 3 over its monthslong freeze on all federal Gateway funding. On Feb. 6, a federal court granted a temporary restraining order prohibiting the Trump administration’s withholding of funds, and on Feb. 18, funding resumed and construction was restarted.
The RFP called for a feasibility study that will produce distinct terminal modernization concepts. The study will include maintaining the existing terminal footprint, while fully reimagining the current 96,000-square-foot, three-level structure and its 700-linear-foot frontage; evaluating adjacent areas that may be repurposed, including frontage roadways, loading dock areas, and rental car quick-turn and ready lots and aligning the redesigned terminal with current industry standards and passenger expectations.
Published: July 1, 2026.