A Manhattan federal judge on Monday, June 29, 2026, blocked the Trump administration from freezing critical grant funds intended for New York and New Jersey's Gateway Tunnel Project.
The court declared that the unilateral cancellation of federally obligated financial support was illegal.
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The judicial ruling safeguards the $16 billion initiative aimed at rehabilitating aging commuter train tunnels running beneath the Hudson River.
The Department of Transportation had previously attempted to halt the flow of billions of dollars in authorized grants for the interstate infrastructure project.
Joint Statement Celebrates Ruling
Governors Sherrill and Hochul and Attorneys General Davenport and James issued a joint statement welcoming the decision.
They said the Trump administration's attempt to freeze billions of dollars in grants for the Gateway Tunnel Project is flagrantly unlawful.
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Thanks to litigation, 1,000 people are back on the job and construction continues every day, the statement added.
The victory sends a clear message that the administration's attempt to halt Gateway funding will not stand.
As reported by Law360, the legal development ensures that construction remains underway without immediate threat of federal funding suspensions.
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The multi-state coalition asserted that the ruling prevents arbitrary administrative blockages on vital regional transit improvements.
