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Judge blocks tunnel funding pause
A U.S. federal judge, Jeannette A. Vargas, issued a temporary restraining order on Feb. 6 requiring the Trump administration to restore roughly $16 billion in federal support for the Hudson (Gateway) Tunnel project and blocking a funding pause that states said would force construction to stop immediately.
“A federal judge on Feb. 6 ordered the Trump administration to resume funding for the $16 billion Hudson Tunnel Project, averting an imminent shutdown just as construction was poised to stop.”
The order was entered just as contractors warned work would halt and officials said construction paused late Friday, with the judge finding the states would 'suffer irreparable harm' and that the public interest favored blocking the freeze.
The ruling came as the states seek broader injunctions while the administration's pause remains under review.
USDOT funding pause dispute
A Biden-appointed judge’s order followed the Department of Transportation pausing roughly $16 billion in support while reviewing whether certain expenditures violated new contracting rules or were linked to diversity, equity and inclusion (DEI) principles.
Multiple outlets reported that USDOT was reviewing several projects for discriminatory contracting and citing Executive Order 14151 and related concerns.
The administration framed the pause on those legal and procedural grounds, while state officials and plaintiffs argued the pause was politically motivated.
Gateway tunnel construction halt
State officials and the Gateway Development Commission warned of immediate harms: they said construction was halted late Friday, a credit line had run dry, and the work stoppage would cost about 1,000 immediate jobs and jeopardize many more.
“The commission had warned it would stop work at 5 p.m. without $205 million in reimbursements, risking immediate layoffs of 1,000 workers and broader economic fallout; construction was halted that evening.”
Plaintiffs said the freeze risked exposing a vulnerable construction site and a massive tunnel-boring machine, and noted the tunnel is intended to relieve strain on a more-than-110-year-old existing tunnel that carries Amtrak and commuter traffic.
Temporary injunction timeline
Vargas granted a short-term injunction—a temporary restraining order—while the states pursue broader relief.
The parties were ordered to meet to set and confer on next steps by Feb. 11.
amNewYork reported the injunction lasts 14 days.
The Department of Transportation contested the court's jurisdiction and argued other legal avenues could provide relief.
Plaintiffs emphasized the immediacy of harm.
Political reactions and reporting
Reactions were sharply divided along political and institutional lines.
“New York Attorney General Letitia James called the ruling a “critical victory for workers and commuters.””
New York Attorney General Letitia James hailed the decision as a 'critical victory for workers and commuters,' while state officials promised continued litigation.
The administration disputed the severity of the alleged harms.
Some outlets reported political context and allegations, including widely reported and disputed claims that President Trump had linked restoration of funds to renaming landmarks, and those outlets generally present these details as allegations or reports rather than proven facts.