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Feds drop appeal over New York, New Jersey tunnel funding fight

The dismissal leaves in place a ruling that protected $16 billion in Gateway tunnel funding and preserved money for a project carrying about 200,000 weekday riders.

  • On Friday, the Trump Administration and states agreed to dismiss an appeal regarding the $16 billion Gateway Tunnel Project in the 2nd Circuit Court of Appeals, ending the dispute over federal funding for the Hudson River rail project.
  • Budget Director Russell Vought previously froze funding citing an "administrative review," while New York Attorney General Letitia James and New Jersey Attorney General Jennifer Davenport alleged the administration was "engaged in political retribution" against the states.
  • District Court Judge Jeannette Vargas ruled in June that the funding freeze "flagrantly" violated federal law, prohibiting the Department of Transportation from blocking the money; the Gateway Commission also filed a separate challenge in the Court of Federal Claims.
  • New Jersey Democratic Gov. Mikie Sherrill stated, "This is a big victory for millions of New Jersey commuters and for the nearly 100,000 jobs the Gateway Tunnel Project will create," securing funding for the nation's infrastructure project.
  • The Gateway Tunnel Project upgrades the 1910 tunnel carrying about 200,000 weekday passengers on Amtrak and Transit between New Jersey and Manhattan, with New York and New Jersey agreeing to split the 30% local share of construction costs.
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InsideNoVA.comInsideNoVA.com
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Feds drop appeal over New York, New Jersey tunnel funding fight

(The Center Square) — The Trump administration has dropped its appeal of a federal court ruling blocking an attempt to cut funding for the Gateway tunnel and other infrastructure projects in the New York and New Jersey region.

·Washington, United States
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Watauga Democrat broke the news in Calhoun, United States on Sunday, September 20, 2026.
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