Federal Judge Blocks Gateway Funding Freeze

New York and New Jersey win temporary reprieve in lawsuit against Trump administration

Published on Feb. 9, 2026

A Manhattan federal judge granted an emergency request from New York and New Jersey to force the Trump administration to temporarily continue funding the $16 billion Gateway tunnel project, which links the Garden State with Midtown Manhattan. The administration had moved to freeze funding over the project's contracting requirements based on race or sex, but Judge Jeannette Vargas ruled in favor of the states as their lawsuit against the Department of Transportation continues.

Why it matters

The Gateway project is a critical infrastructure initiative to improve rail connections between New York and New Jersey, but has faced political headwinds from the Trump administration. This court ruling represents a temporary victory for the states in their efforts to keep the project moving forward despite the federal government's attempts to halt funding.

The details

Judge Vargas granted the states' request for a temporary restraining order, blocking the Trump administration from freezing Gateway funding as the broader lawsuit proceeds. The administration had cited issues with the project's contracting requirements related to race and sex as the reason for the proposed funding freeze.

  • The funding freeze was set to take effect on Friday, February 7, 2026.
  • Judge Vargas issued the temporary restraining order on Thursday, February 6, 2026.

The players

Judge Jeannette Vargas

A Manhattan federal judge who granted the temporary restraining order against the Trump administration's proposed Gateway tunnel funding freeze.

New York and New Jersey

The two states that filed the lawsuit against the Department of Transportation to prevent the Gateway tunnel funding freeze.

Trump administration

The federal government, which had moved to freeze funding for the $16 billion Gateway tunnel project, citing issues with the project's contracting requirements.

Department of Transportation

The federal agency named in the states' lawsuit over the proposed Gateway tunnel funding freeze.

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What they’re saying

“The $16 billion project to link the Garden State with Midtown was set to grind to a halt Friday with the Trump administration saying it was freezing funding over the project's contracting requirements based on race or sex.”

— Chris Dolmetsch and Michelle Kaske, Reporters (Bloomberg Law)

What’s next

The states' lawsuit against the Department of Transportation over the Gateway tunnel funding freeze will continue, with the temporary restraining order in place until the court can make a final ruling on the matter.

The takeaway

This court ruling represents a temporary victory for New York and New Jersey in their efforts to keep the critical Gateway tunnel project moving forward, despite the Trump administration's attempts to halt federal funding over contracting requirements. The battle over the project's future is far from over, however, as the broader lawsuit proceeds.