Judge Places Restraining Order on Gateway Funding Freeze

On Feb 6, 2026

This evening, US District Judge Jeannette Vargas issued a temporary restraining order against the Trump administration’s move to suspend $16 billion in funding for the Gateway tunnel project.

Commenting on the lawsuit against the Trump administration brought on by the states of New York and New Jersey, 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.”

New York and New Jersey are “likely to succeed on the merits” of their claim that the funding freeze was arbitrary and capricious. She was persuaded that plaintiffs “would suffer irreparable harm in the absence of an injunction.”

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 Gateway Development Commission commented that it is pleased with the court’s decision. “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. As soon as funds are released, we will work quickly to restart site operations and get our workers back on the job,” it said in a written statement.

Acting New Jersey Attorney General Jennifer Davenport commented, “As the court correctly recognized, the Trump administration’s attempts to freeze funding for the Gateway Tunnel project are plainly illegal, and they would cause grave harm to New Jersey and New York. We are grateful that the court agreed to put a halt to this unlawful freeze on this emergency basis.”

New York Attorney General Letitia James commented, “This is a critical victory for workers and commuters in New York and New Jersey. I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on. The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”

Judge Vargas’ decision follows a press conference this morning where Gov. Mikie Sherrill, Democratic members of New Jersey’s Congressional delegation, including Senator Cory Booker, and labor union leaders gathered in Weehawken to protest the construction stoppage of the Hudson Tunnel Project. The suspension of funding could impact 1,000 current jobs and has the potential of impacting 11,000.

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