Federal Judge Orders Trump Administration to Unfreeze Gateway Tunnel Funding

Deadline looms for release of $16 billion earmarked for critical infrastructure project connecting New York and New Jersey

Published on Feb. 12, 2026

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A federal judge has ruled that the Trump administration must unfreeze $16 billion in funding for the Gateway Tunnel Project, a critical infrastructure initiative connecting New York and New Jersey, by Thursday. The project was halted in October when President Trump abruptly froze the funding, despite it being legally secured in July 2024. The judge issued a temporary restraining order to prevent the project shutdown, but construction crews remain sidelined as a legal battle plays out.

Why it matters

The Gateway Tunnel Project is a vital transportation link between the two states, with the existing century-old tunnels in dire need of repair. Halting the project has already resulted in the immediate loss of 1,000 jobs, and an extended pause could risk up to 11,000 construction jobs and 95,000 additional related jobs. Completing the new tunnels is crucial for the regional economy.

The details

In October, President Trump abruptly froze the $16 billion in federal funding for the Gateway Tunnel Project, despite the money being legally secured in July 2024. This led to the construction being halted, with workers sent home. A federal judge issued a temporary restraining order on Friday to prevent the project shutdown, but the legal battle is ongoing as the Trump administration fights to continue withholding the funds.

  • On October 1, 2025, President Trump froze the $16 billion in federal funding for the Gateway Tunnel Project.
  • On February 11, 2026, a federal judge ruled that the Trump administration must unfreeze the funding by Thursday, February 12, 2026.

The players

Gateway Development Commission (GDC)

The organization overseeing the Gateway Tunnel Project, which said it and the federal government have been "legally bound" by the terms of the grants since the funding was secured in July 2024.

Mikie Sherrill

The Governor of New Jersey, who said she is fighting hard to ensure the project is completed and has demanded that the Trump administration release the frozen funding.

U.S. Department of Transportation

The government agency that asked the court to pause the restraining order preventing the project shutdown, arguing that disbursing the funds would cause "irreparable injury" if the government prevails on appeal.

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What they’re saying

“I took the president to court on Friday, and I won. The court demanded release that money, and he has yet to do so. Here we are, all this equipment waiting to be put to work, all of you not on the job, because the president of the United States cares more about politics than he does about working men and women in this country.”

— Mikie Sherrill, Governor of New Jersey (CBS News)

“The government will be forced to disburse up to $200 million, without any obvious mechanism for recovering that money if the government prevails on appeal. That is irreparable injury.”

— U.S. Department of Transportation (CBS News)

What’s next

The Trump administration faces a Thursday deadline to release the $16 billion in funding for the Gateway Tunnel Project, unless an appeals court allows the government to continue withholding the funds.

The takeaway

The legal battle over the Gateway Tunnel Project funding highlights the political tensions surrounding critical infrastructure investments, with the Trump administration's freeze on the project jeopardizing thousands of jobs and the regional economy. Completing the new tunnels remains crucial for improving transportation links between New York and New Jersey.