Federal funding for the $16 billion Gateway rail tunnel between New York City and New Jersey will resume following a four-month suspension, Trump administration lawyers told a federal judge on Friday.
$205 Million Payment Delayed Beyond Court Deadline
The government attorneys told U.S. District Judge Jeannette Vargas of the Southern District of New York that part of the $205 million in overdue payments is being sent to the Gateway Development Commission, with the rest expected by early next week.
Judge Vargas had ordered the suspension to end by 5 p.m. on Thursday.
The commission and Democratic elected officials reported on Friday that funding had not resumed by midday despite the court order.
New York and New Jersey sued the U.S. Department of Transportation after the suspension forced layoffs of approximately 1,000 union workers and halted construction last week.
Construction Paused Until Funds Arrive
The Gateway Development Commission stated construction will remain paused until the $205 million in reimbursement funds are received.
“We are working with our contractors to plan how to deploy these funds in the most effective way and get workers back on the job to resume some construction as soon as possible,” the commission said on Friday.
New York Gov. Kathy Hochul stated in her official statement, “My message to the Trump administration is simple: Enough with the chaos and delays. Get people back to work.”
New Jersey Governor Mikie Sherrill wrote on X: “The President illegally canceled the most important infrastructure project in the nation. We took him to court. We won. A judge ordered him to release the money.”
Photo: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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