Judge Jeannette Vargas Orders Trump Administration To Restore $16 Billion For Hudson Tunnel Project

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.

“The Trump administration will have to temporarily resume funding the Gateway tunnel rail project for two weeks, following a stay from a Manhattan federal judge on Friday, allowing construction that was set to halt on Feb”

amNewYork

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.

amNewYork

The ruling came as the states seek broader injunctions while the administration's pause remains under review.

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.

Anadolu Ajansı

The administration framed the pause on those legal and procedural grounds, while state officials and plaintiffs argued the pause was politically motivated.

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.

“A tunnel is under construction in Manhattan that will connect New York and New Jersey Oct”

Associated Press

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.

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.

Inquirer

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.

Reactions were sharply divided along political and institutional lines.

“NEW YORK — A federal judge ordered the Trump administration to restore funding to a new rail tunnel between New York and New Jersey on Friday, ruling just as construction was set to shut down on the massive infrastructure project”

Inquirer

New York Attorney General Letitia James hailed the decision as a 'critical victory for workers and commuters,' while state officials promised continued litigation.

New York Post

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.