Judge orders Trump administration to unfreeze Gateway Tunnel funding

Published February 7, 2026 6:28pm ET



A federal judge has ruled that the Trump administration must unfreeze billions of dollars in funding for the Gateway tunnel, an infrastructure project that would create a new two-track rail tunnel from New Jersey to Penn Station in Manhattan.

The administration froze funds for the project in October as it conducted a review to ensure it complied with a rule “barring race- and sex-based contracting requirements from federal grants.” The states of New Jersey and New York filed a lawsuit on Tuesday in response as construction was set to shut down on Friday, arguing the pause was unlawful and solely “based on the President’s desire to punish political rivals.”

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