Judge bars Trump administration from blocking funding for Hudson River tunnel

“The ostensible reason for the suspension of funds was to allow DOT to conduct a review of GDC’s compliance with federal nondiscrimination laws. President Donald J. Trump, however, made contemporaneous statements indicating that he had personally made the decision to ‘terminate’ funding for the Project ‘because the Democrats are so foolish – what they’ve done to the country,’” the ruling reads.

The long-delayed Gateway Tunnel project to upgrade infrastructure between New Jersey and Penn Station in Midtown has been in the works since 2010. Major construction began in late 2023, and the project is not set to be completed until 2035. 

In July 2024, the Biden administration handed it a $6.8 billion federal grant, marking the most money ever provided to a mass transit infrastructure project in the United States. The Hudson River tunnel is a critical link on the Northeast Corridor, carrying more than 200,000 daily riders. 

Transportation Secretary Sean Duffy announced in October that roughly $205 million in federal funding would be on ice, expressing concern that the project was using “unconstitutional” diversity, equity, and inclusion practices. The department said it would conduct an administrative review of the project to ensure compliance with a rule “barring race- and sex-based contracting requirements from federal grants.”

“Secretary Duffy’s position on the [Disadvantaged Business Enterprise] program is clear – subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources,” the Transportation Department said. 

The move triggered a pause in construction and a lawsuit from New York and New Jersey in February. 

SONDERLING ACTING HIS WAY INTO PERMANENT ROLE ATOP LABOR DEPARTMENT

In response to a court order that month, the Trump administration was forced to release the first $30 million in frozen funding. On Feb. 18, the Trump administration released the remaining $127 million. 

At the time, Trump complained he was opposed to the project because it “cost many BILLIONS OF DOLLARS more than projected or anticipated.” The president has declared that the federal government would not cover any excess expenses beyond existing commitments.