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Judge Orders Trump Admin Restore Funding NY-NJ Rail Tunnel/ TezzBuzz/ WASHINGTON/ J. Mansour/ Morning Edition/ A federal judge ordered the Trump administration to restore funding for a major rail tunnel connecting New York and New Jersey. The ruling halted a planned construction shutdown that threatened thousands of jobs and regional rail service. The decision keeps federal dollars flowing as a lawsuit over the project proceeds.

Hudson Tunnel Funding Ruling: Quick Looks

• Judge issues emergency order restoring tunnel funding
• Trump administration had frozen $16 billion in support
• States warned project faced immediate shutdown
• Court cites public interest and irreparable harm
• Project seen as critical to Northeast rail network
• Lawsuit over funding pause continues

Deep Look: Judge Orders Trump Admin Restore Funding NY-NJ Rail Tunnel

NEW YORK — A federal judge on Friday ordered the Trump administration to immediately restore funding for a new rail tunnel between New York and New Jersey, intervening just hours before construction was set to shut down on one of the nation’s most significant infrastructure projects.

U.S. District Judge Jeannette A. Vargas approved a temporary restraining order preventing the federal government from withholding billions of dollars previously committed to the Hudson Tunnel Project. The ruling ensures that funding continues while New York and New Jersey pursue a preliminary injunction in their lawsuit against the administration.

The Trump administration announced months ago that it was freezing roughly $16 billion in federal support for the tunnel, citing a previous government shutdown and objections raised by federal budget officials over diversity, equity and inclusion- spending requirements. The funding pause sparked immediate backlash from state officials, labor unions and transportation advocates.

The White House and the US Department of Transportation did not immediately respond to requests for comment following the ruling.

New York Attorney General Letitia James praised the decision, calling it a critical step in protecting workers and commuters throughout the region.

The Gateway Development Commissionwhich oversees construction, had warned that work would stop late Friday afternoon if federal funds were not released. Officials said the shutdown would have triggered the immediate loss of about 1,000 construction jobs, with thousands more at risk if the stoppage continued.

In a statement issued Friday night, the commission said it would move quickly to restart operations once funds are formally released.

The tunnel project is designed to relieve pressure on an existing, more than 110-year-old rail tunnel beneath the Hudson River that carries Amtrak and commuter trains between New Jersey and Manhattan. The aging infrastructure has long been blamed for cascading delays across the Northeast Corridor, the busiest passenger rail route in the country.

New York and New Jersey filed suit earlier this week seeking to block the funding freeze, arguing that even a short interruption would cause lasting damage. The Gateway Development Commission also filed a separate legal challenge.

During a hearing in Manhattan, Shankar Duraiswamy, representing the New Jersey attorney general’s office, told the court that the states needed urgent relief because active construction sites could not simply be abandoned.

Government attorneys disputed the severity of the states’ claims. Assistant U.S. Attorney Tara Schwartz argued that the commission could maintain the construction sites for some period without immediate danger. But the judge questioned how long that would be feasible, and state lawyers responded that even a temporary pause would cause irreparable harm as rail delays persist.

The funding freeze had also taken on political overtones. Critics described it as leverage aimed at Chuck Schumer, the Democratic leader from New York, whom the White House blamed for a prior government shutdown.

Speaking to reporters aboard Air Force One earlier this week, President Donald Trump was asked about reports suggesting he would restore funding if Schumer agreed to rename New York’s Penn Station and Washington-area Dulles International Airport after him.

Judge Vargas’ ruling does not resolve the underlying lawsuit but preserves the status quo while the case proceeds. A hearing on a longer-term injunction is expected in the coming weeks.

Transportation experts say the decision underscores the judiciary’s role in preventing abrupt disruptions to large-scale infrastructure projects that carry national economic implications.

For now, construction crews remain on standby, and regional leaders say the ruling provides temporary stability for a project widely viewed as essential to the future of rail travel along the East Coast.

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