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New York says Trump admin released Gateway tunnel funds after court order

The release ends a funding freeze that halted a $16 billion tunnel project vital for 200,000 daily commuters and involves about 1,000 workers, officials said.

  • On Wednesday, the Trump administration disbursed $235 million to Gateway Development Commission, including the $205 million a judge ordered unfrozen.
  • After federal agencies offered shifting explanations, New Jersey and New York sued earlier this month alleging the pause violated the Administrative Procedures Act, leading courts to order the funding to resume.
  • On Feb. 6, construction halted when funding dried up, stopping five Gateway projects in New Jersey and Manhattan, laying off 1,000 construction workers as the line of credit expired and costs rose.
  • Political leaders hailed the repayment as a major win, with Hochul calling Trump on Monday after his social post about the project.
  • The commission's separate Court of Federal Claims suit alleges contractual breaches, a repayment status report filed Tuesday says Gateway may be owed more, and Congress approved roughly $15 billion for the $16 billion Hudson River Tunnel Project.
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Bloomberg broke the news in United States on Tuesday, February 17, 2026.
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