Judge Orders Trump Administration to Unfreeze $16B for NY Tunnel Project

Ruling says delay would harm public interest, as Trump sought to leverage funding for renaming Penn Station.

Published on Feb. 6, 2026

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A federal judge in New York ruled that the Trump administration must unfreeze more than $16 billion earmarked for a major infrastructure project connecting New York and New Jersey through a new rail tunnel beneath the Hudson River. The judge said the states of New York and New Jersey would 'suffer irreparable harm' if the funding was not released, and that the public interest would be 'harmed by a delay' in the critical project.

Why it matters

The long-planned Hudson Tunnel Project is considered one of the most important infrastructure initiatives in the country, but has faced political obstacles and funding challenges. The judge's ruling blocks the Trump administration's attempt to leverage the funding as a bargaining chip to rename New York's Penn Station after the former president.

The details

The temporary restraining order granted by US District Judge Jeanette Vargas comes after the Trump administration had withheld the $16 billion in funding meant for the Hudson Tunnel Project. The judge said the states of New York and New Jersey would 'suffer irreparable harm' and the public interest would be 'harmed by a delay' if the funding was not released to allow construction to continue.

  • On February 6, 2026, a federal judge in New York ruled that the Trump administration must unfreeze the $16 billion in funding.
  • Last month, President Trump told Senate Minority Leader Chuck Schumer he was prepared to drop the funding freeze if Schumer agreed to rename New York's Penn Station and Washington's Dulles International Airport after Trump.

The players

Judge Jeanette Vargas

A US District Judge in the Southern District of New York who granted the temporary restraining order against the Trump administration's funding freeze.

Donald Trump

The former president who had withheld the $16 billion in funding for the Hudson Tunnel Project, and sought to leverage the funding to rename New York's Penn Station after himself.

Chuck Schumer

The Senate Minority Leader who Trump said agreed to rename Penn Station, but Schumer immediately dismissed as an 'absolute lie.'

Letitia James

The New York Attorney General who sued the Trump administration earlier this month over the funding freeze, and celebrated the judge's ruling as a 'critical victory.'

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What they’re saying

“Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”

— Judge Jeanette Vargas, US District Judge

“Absolute lie. He knows it. Everyone knows it. Only one man can restart the project and he can restart it with the snap of his fingers.”

— Chuck Schumer, Senate Minority Leader (X)

“I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on. The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”

— Letitia James, New York Attorney General

What’s next

The judge's temporary restraining order blocks the Trump administration's funding freeze, allowing construction on the Hudson Tunnel Project to continue. However, the long-term funding and political battles over the critical infrastructure initiative are likely to continue.

The takeaway

This case highlights the ongoing political tensions and funding challenges facing major infrastructure projects, even those deemed essential for regional and national interests. The judge's ruling underscores the importance of the Hudson Tunnel Project, while also exposing the Trump administration's attempts to leverage federal funding for political gain.