Key facts
- The Trump administration is appealing a ruling that requires continued federal payments for the $16 billion New York tunnel project.
- An appeals court rejected the administration's attempt to halt these payments.
- A U.S. judge had previously ordered the federal government to release funds for the project.
- The Gateway Development Commission stated that construction has fully resumed but warned of a potential pause if federal funding does not continue.
The Trump administration has appealed a ruling that requires the federal government to continue making payments for the $16 billion New York tunnel project. This appeal follows an earlier decision by an appeals court that rejected the administration's attempt to halt these payments.
The Hudson Tunnel Project aims to construct a new commuter rail tunnel between Manhattan and New Jersey, while also repairing a century-old existing tunnel. This vital infrastructure is used by over 200,000 travelers and 425 trains daily.
Previously, the U.S. Transportation Department halted grant fund disbursements for the project, a move President Donald Trump attributed to congressional Democrats. A U.S. judge subsequently ordered the payments to resume in February. The Justice Department had sought to put this ruling on hold pending its appeal.
The Gateway Development Commission confirmed that construction has resumed but cautioned that work could pause again within two to three months if federal funding disbursements do not continue. The funding freeze had prompted separate federal lawsuits from the Gateway Commissioner, New Jersey, and New York.