Frozen Gateway Hudson Tunnel funds released after court order, construction to resume

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New York Construction Report staff writer

All previously frozen federal funding for the Gateway Program Hudson Tunnel Project has been released, clearing the way for construction to resume on the multibillion-dollar rail initiative connecting New York and New Jersey.

The final installment — nearly $130 million — was delivered to the two states recently, unlocking the remaining funds that had been withheld during a months-long freeze by the Trump administration.

Letitia James said the release followed a successful lawsuit filed by her office challenging the funding freeze.

“This funding freeze was unlawful from the start. We took swift action in court, and now every dollar that was illegally withheld has been released,” James said in a statement. “This morning, New York and New Jersey received the remaining nearly $130 million owed for the Gateway Project, finally unlocking all the funding that had been frozen.”

Earlier this month, James and Jennifer Davenport sued the Trump administration, arguing that the freeze threatened to force an immediate construction shutdown.

On Feb. 6, James secured a temporary restraining order requiring the federal government to release more than $200 million in overdue funds, which took effect Feb. 12.

According to the attorney general’s office, the administration released $30 million on Feb. 13, followed by an additional $77 million earlier this week. The remaining funds were delivered this morning, ensuring construction on the Hudson Tunnel can move forward.

James said her office will remain vigilant to ensure funding continues uninterrupted.

“My office will keep fighting in court to save Gateway permanently, on behalf of the millions of workers and riders who depend on it,” she said.

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