Federal funds are set to be released for the Hudson River Tunnel project once more as of Thursday night, following the expiration of a court order that had previously halted these funds.
This change restores the directive issued by Manhattan Federal Court Judge Jeanette Vargas, which came as a result of legal action taken by New York and New Jersey against the federal government. The previous freeze, temporarily extended until 5 p.m. Thursday, was initiated by the Trump administration to prevent the allocation of federal money to the $16 billion rail tunnel initiative.
New York Attorney General Letitia James expressed the urgency of the situation, stating, “The court’s order is now effective, necessitating the immediate release of funds for the Hudson Tunnel Project by the federal government. The administration never possessed the authority to withhold this funding, and there is no longer any justification for further delays.”
James further emphasized the importance of compliance, saying, “We anticipate full adherence to the court’s directive and the swift arrival of funds essential for maintaining jobs and advancing this vital project.”
Earlier in the week, federal attorneys filed several motions prompting Judge Vargas to temporarily suspend her injunction, allowing the Department of Transportation to appeal to the 2nd Circuit Court of Appeals.
However, the appellate court did not intervene on behalf of the Trump administration as Vargas’ order expired Thursday. The court issued a brief statement, noting that the issue would be reviewed by a full panel during the week of February 23.
The Gateway tunnel under construction in Manhattan last year. (AP Photo/Ted Shaffrey)
But the appellate court did not come to the Trump administration’s rescue as Vargas’ block expired Thursday. In a brief, two-sentence order, the court referred the matter to a full panel the week of February 23.
“This is good news for the Hudson Tunnel Project, and we anticipate receiving the $205 million in reimbursement funds from the federal government,” a spokesman for the Gateway Development Commission, the bi-state body in charge of building the tunnel, said in a statement Thursday.
GDC is not a party to the states’ suit, and is separately suing the federal government for breach of contract over the funding freeze.
The Trump administration initially froze funding last fall, announcing that they would block the distribution of the congressionally approved funds just hours into last year’s federal government shutdown.
While the USDOT has claimed the funding interdiction is tied to the Trump administration’s change to diversity rules in construction contracting, the president and his coterie have offered other explanations. After stating in October that the project was “terminated” because it was supported by Democratic lawmakers, Trump went on to offer to restore the funding if Penn Station and Dulles Airport were named after him.
In an unrelated explanation, White House spokesman Kush Desai claimed last month that the funding freeze was over the fact that Democratic lawmakers had supposedly not been “prioritizing the interests of Americans over illegal aliens.”
Thursday’s restoration of funding is temporary, pending a ruling on the feds’ motions in the Second Circuit — a reality acknowledged by the GDC on Thursday.
“While this is a positive step, we need consistent, reliable access to the Hudson Tunnel Project’s federal funding moving forward,” a GDC spokesman said. “GDC continues to pursue all avenues to regain access to all the federal funds for this urgent project, including our lawsuit. We are confident in our legal position and look forward to resolving this important matter.”
