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Monday, February 9, 2026

U.S. judge temporarily halts ordering Trump administration to unfreeze funding for NYC Gateway Tunnel project

 U.S. District Judge Jeannette Vargas temporarily paused her own order that required the Trump administration to immediately restore $16 billion in funding for the Gateway Tunnel project. The pause, lasting until Feb. 12, 2026, allows time for an emergency appeal to the Second Circuit Court regarding the freeze, which was initially deemed likely unlawful and a cause of "irreparable harm".

Key details regarding the legal battle:

  • The Hold: Judge Vargas paused her Feb. 6 ruling until Thursday, Feb. 12 at 5 p.m. to allow for a federal appeal by the administration.
  • Initial Ruling: On Feb. 6, 2026, the judge ordered the administration to lift the four-month freeze on funds for the $16 billion project, which connects New York and New Jersey.
  • Project Impact: The freeze threatened to shut down construction on the crucial rail tunnel, which serves over 200,000 travelers daily.
  • Administration Action: The Trump administration halted the funds, citing concerns over "unconstitutional spending" related to diversity, equity, and inclusion policies.
  • Legal Standing: The judge previously indicated that the states of New York and New Jersey are likely to succeed in proving the funding freeze was arbitrary and improper. The project, which includes building a new tunnel and repairing the existing, storm-damaged one, is critical for NEC rail transit.

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