Federal Judge Allows Gateway Project Funding to Resume

The ruling blocks the Trump administration's attempt to freeze funding for the critical infrastructure project.

Published on Feb. 7, 2026

A federal judge has granted a temporary restraining order to prevent the shutdown of the Gateway Tunnel project, a critical infrastructure project connecting New York and New Jersey. The New York Attorney General's Office sued the Trump administration this week to force the release of billions in frozen federal funding for the project, which was set to run out of money and halt construction on Friday. The judge's ruling is a victory for the states and the thousands of workers building the tunnel, which is one of the most important rail corridors in the nation.

Why it matters

The Gateway Tunnel project is a crucial infrastructure initiative that supports 20% of the national economy by providing rail service between New York and New Jersey. Suspending the project would have threatened 1,000 construction jobs and caused major disruptions for the hundreds of thousands of commuters who rely on the aging rail corridor daily. The legal battle highlights the political tensions over infrastructure funding and the Trump administration's attempts to leverage project approvals for political gain.

The details

The New York Attorney General's Office filed a lawsuit this week seeking an emergency order to force the Trump administration to release billions in previously approved federal funding for the Gateway Tunnel project. Construction on the new rail tunnel beneath the Hudson River was set to wind down on February 6 due to a lack of funding, until the federal judge granted the temporary restraining order. The lawsuit alleged the funding freeze represented political retribution against the project's Democratic supporters, citing social media posts where Trump claimed he was terminating the project to cut programs championed by Senate Minority Leader Chuck Schumer.

  • The federal court hearing on the lawsuit began on Friday, February 7, 2026.
  • Construction on the Gateway Tunnel project was set to fully halt on February 6, 2026 without an emergency influx of cash.

The players

Letitia James

The New York Attorney General who filed the lawsuit against the Trump administration to restore funding for the Gateway Tunnel project.

Kathy Hochul

The Governor of New York who called the funding freeze a "revenge tour" to "derail one of the most vital infrastructure projects this nation has built in generations."

Kirsten Gillibrand

The Democratic U.S. Senator from New York who dismissed reports that the Trump administration would trade the funding for renaming New York City's Penn Station and Washington D.C.'s Dulles International Airport after President Donald Trump.

Donald Trump

The former President of the United States who the lawsuit alleged was using the funding freeze as political retribution against Democratic supporters of the Gateway Tunnel project.

Chuck Schumer

The Senate Minority Leader whose programs the lawsuit claimed Trump was trying to cut by terminating the Gateway Tunnel project.

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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. 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 (The Hill)

“This ruling is a victory for the thousands of union workers who will build Gateway and the hundreds of thousands of riders who rely on it every day. We will work to protect this decision and move as soon as possible to get work back on track.”

— Kathy Hochul, Governor of New York (The Hill)

What’s next

The federal court will hold a hearing to determine the long-term fate of the Gateway Tunnel project funding.

The takeaway

This legal battle highlights the political tensions over critical infrastructure projects and the Trump administration's willingness to use federal funding as leverage for political gain. The temporary restraining order is a win for the states and workers, but the long-term future of the Gateway Tunnel project remains uncertain.