A federal judge on Monday permanently blocked the Trump administration from withholding $16 billion in funding for a rail tunnel project connecting New York and New Jersey under the Hudson River, ruling that the administration’s freeze was unlawful.
U.S. District Judge Jeannette Vargas, appointed by former President Joe Biden, issued the permanent injunction in Manhattan, siding with New York and New Jersey. The two states sued in February, arguing that the Trump administration’s decision to suspend disbursements was politically motivated and arbitrary and capricious.
The $16 billion project, known as the Gateway Program, would add a new rail tunnel under the Hudson River connecting New York and New Jersey. About $12 billion of the funding comes in the form of federal grants, while $4 billion comes from federal loans to be repaid by New York, New Jersey, and the Port Authority of New York and New Jersey.
The White House and the Transportation Department did not respond to requests for comment, according to the Wall Street Journal. The administration said last year it would not distribute the funds while it reviewed whether the project included any diversity, equity, and inclusion policies.
Vargas’s opinion cited public comments Trump made in October, in which the president said: “It’s terminated because the Democrats are so foolish.” Trump added, “Right now, there is no funding — because it’s up to me.”
The project manager overseeing the tunnel construction said in January that the project would be forced to cancel work without the funds. After the states sued, Vargas temporarily blocked the freeze while the case proceeded. Monday’s ruling permanently bars the administration from withholding the money.
In her opinion, Vargas wrote that the administration made no attempt to justify its actions as consistent with the governing federal regulations.