Gov. Mikie Sherrill and Senate Minority Leader Chuck Schumer joined union leaders and workers at a rally this morning at the Tonnelle Avenue construction site in North Bergen to demand the release of federal funding for the Gateway Tunnel Project, as construction remains halted and disbursement of the funds remains unresolved.
Last Friday, US District Judge Jeannette Vargas issued a temporary restraining order against the Trump administration’s move to suspend $16 billion in funding for the project after New Jersey and New York sued the administration for withholding the funds.
On Sunday, the Trump administration responded by appealing the court’s decision, according to a court filing.
The ruling is a temporary measure pending a hearing on Feb. 11 that will determine the next phase in the project.
Democratic leaders in the region are accusing the Trump administration of suspending the funds for political reasons.
During the federal government shutdown in the fall, President Trump declared he would “terminate” money allocated for the project. The primary stated reason was that the administration needed to review the project’s contracts to ensure they did not comply with “unconstitutional” DEI principles regarding disadvantaged businesses.
Gateway leaders claim they have submitted all the documents requested as part of that review, but criticized the federal government for moving the goalposts.
Two weeks ago, a White House spokesperson indicated in a statement that the money would continue flowing if Democrats in Congress agreed to fully fund the Department of Homeland Security.
Commenting on the lawsuit, Judge Vargas said in her written decision that “plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”
“We thank our partners in New York and New Jersey for taking action to help us access the federal funding for the Hudson Tunnel Project,” the Gateway Development Commission said in a written statement, adding that as soon as funds are released, it will work quickly to restart site operations and get workers back on the job.
In a written statement, Governor Mikie Sherrill wrote, “I am thrilled that the court has granted temporary relief, lifting the freeze of billions of dollars of federal funding for Gateway. President Trump’s arbitrary and politically motivated decision to freeze this funding is plainly illegal, and we will continue to pursue full relief so the nation’s most urgent transportation project can keep moving forward — and workers can keep putting food on the table.”
The suspension of funding could impact 1,000 current jobs and has the potential of impacting 11,000.
Sherrill called the Gateway Tunnel the “most significant project in the entire history of the nation.”
“Each day hundreds of LIUNA members and their building trades brothers and sisters report to work on the Gateway Hudson Tunnel to provide for their families,” said Laborers’ International Union of North America (LIUNA) General President Brent Booker. “While workers have shown up at the crack of dawn every day, the Trump Administration has failed to show up for them. We call on President Trump to stop holding our livelihoods hostage, put working people and our economy first, and immediately release funding for the Gateway Tunnel Project.”
“If this tunnel were to collapse, and it will if we don’t build a new one, there will be a recession and a depression in New York, New Jersey and all America,” Shumer added.
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