Judge Orders Unfreezing of More than $16-B for NY Tunnel Project

A federal judge has ordered the Trump administration to restore funding for a new rail tunnel between New York and New Jersey, ruling just as construction was set to shut down on the massive infrastructure project, Anthony Izaguirre and Dave Collins reported for the Associated Press (AP).

The administration has been barred from withholding the funds while the states seek a preliminary injunction to keep the money flowing as their lawsuit proceeds. (Photo: Metropolitan Transportation Authority of the State of New York) 

The decision came months after the administration announced it was halting $16 billion in support for the project, citing the government shutdown and what a top federal budget official said were concerns about unconstitutional spending tied to diversity, equity, and inclusion (DEI) principles.

US District Judge Jeannette A. Vargas in Manhattan approved a request by New York and New Jersey for a temporary restraining order barring the administration from withholding the funds while the states seek a preliminary injunction to keep the money flowing as their lawsuit proceeds.

“The Court is also persuaded that plaintiffs would suffer irreparable harm in the absence of an injunction,” the judge wrote.

“Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”

New York Attorney General Letitia James called the ruling “a critical victory for workers and commuters in New York and New Jersey.” “I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on,” James added.

“The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”