Judge Blocks Trump Administration's Attempt to Freeze Funding for Major Infrastructure Project

The $16 billion Gateway project can now resume construction after a federal judge ruled the funding freeze was illegal and caused economic harm.

Published on Feb. 6, 2026

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A Manhattan federal judge has ordered the Trump administration to unfreeze funding for the $16 billion Gateway infrastructure project, which includes building new Hudson River tunnels. The decision comes after New York and New Jersey attorneys general filed a lawsuit arguing that the White House's order to withhold the funds was illegal and caused economic harm by putting more than 1,000 jobs on hold. The judge ruled that the plaintiffs had adequately shown the public interest would be harmed by a delay in this critical infrastructure project.

Why it matters

The Gateway project is one of the largest public works projects currently underway in the nation. The Trump administration's attempt to freeze funding for the project was seen as a political move, with the White House reportedly offering to unlock the Gateway funding in exchange for Democrats' support of renaming Penn Station and Washington Dulles International Airport after Trump. This ruling is a setback for the former president's efforts to leverage infrastructure projects for political gain.

The details

Judge Jeannette Vargas ordered the Trump administration to unfreeze the funding for the Gateway project on Friday, paving the way for work to resume on the new Hudson River tunnels. The $16 billion project had been put on hold, with the Gateway commission managing the project saying it would take nearly a year of work and $15 million to $20 million a month to secure and monitor the work sites and store the expensive equipment.

  • On February 7, 2026, a Manhattan federal judge ordered the Trump administration to unfreeze funding for the Gateway project.
  • The lawsuit filed by the New York and New Jersey attorneys general against the federal government was in the aftermath of the White House's order to withhold the funds.

The players

Judge Jeannette Vargas

A Manhattan federal judge who ordered the Trump administration to unfreeze funding for the $16 billion Gateway infrastructure project.

Letitia James

The New York Attorney General who filed the lawsuit against the federal government, arguing the funding freeze was illegal and caused economic harm.

Gateway commission

The organization managing the Gateway project, which said winding down operations at five construction sites would be a huge undertaking costing $15 million to $20 million per month.

Donald Trump

The former president who attempted to freeze funding for the Gateway project, reportedly offering to unlock the funding in exchange for Democrats' support of renaming Penn Station and Washington Dulles International Airport after him.

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What they’re saying

“This is a critical victory for workers and commuters in New York and New Jersey. I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on.”

— Letitia James, New York Attorney General (The Gothamist)

What’s next

The Gateway commission managing the project said it would take nearly a year of work and $15 million to $20 million a month to secure and monitor the work sites and store the expensive equipment, now that the funding has been unfrozen.

The takeaway

This ruling is a setback for former President Trump's efforts to leverage infrastructure projects for political gain, and a victory for the public interest in seeing critical transportation projects like the Gateway tunnels move forward without unnecessary delays or political interference.