Judge bars Trump administration from blocking funding for Hudson River tunnel

Published June 30, 2026 8:36am ET



A federal judge blocked the Trump administration on Monday from blocking federal funding for the Gateway Tunnel project, ruling that its move to do so last year was arbitrary and capricious. 

U.S. District Court Judge Jeannette Vargas’s decision surrounds the $16 billion Gateway Tunnel plan to build two new rail tunnels underneath the Hudson River between New Jersey and New York. The Transportation Department halted roughly $205 million in federal funding for the project in October, amid criticisms that it used “unconstitutional” diversity, equity, and inclusion practices, and faced cost overruns and delays. 

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