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Appeals court rules against Trump administration; all Gateway Tunnel workers back on job

Peter Katz by Peter Katz
March 12, 2026
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The Gateway Development Commission (GDC) has fully resumed construction of the Hudson Tunnel Project as of March 11, following a ruling by a three-judge panel of the Second Circuit U.S. Court of Appeals.

In a loss for the Trump administration, the court on March 10 refused to lift a temporary restraining order that blocks the administration from cutting off funds for the $16 billion project. The court decided that if it lifted the order Trump’s Department of Transportation (DOT) would be free to once again cut off funding. It’s believed that the DOT is considering an appeal of the decision.

New York Gov. Kathy Hochul said that the ruling is “another loss for Trump. Another win for New Yorkers.”

Workers pouring concrete at Hudson River Yards section of project.

New Jersey Attorney General Jennifer Davenport said, “We’re thrilled that the Second Circuit has rejected DOT’s emergency efforts to put back its political and unlawful funding freeze of the Gateway project. Because the injunction we secured the project is back on track and workers are back on the job. It’s time for the administration to admit that its efforts to derail the project and reinstitute its funding freeze are a waste of time, and focus on lowering costs for everyone instead of attacking or commuters and our workers.”

The GDC said, “Workers have returned to all construction sites impacted by the pause, and all construction activities that were suspended started again. While workers are back on the job for now, GDC will have to pause construction again in two to three months if federal funding disbursements do not continue.”

Last October the Trump administration tried to shut down the project by withholding $235 million in funding that was due. When the project ran out of money on Feb. 6 it halted construction activity, sending home about 1,000 construction workers.

“The Hudson Tunnel Project is the most urgent passenger rail project in the country, and GDC’s mission is to deliver it as soon as possible,” said GDC CEO Tom Prendergast. “Our workers are back, and we are moving full steam ahead across all our construction sites, but we will have no choice but to stop work again if the federal government does not continue to disburse the funds that are committed to the project. This project is too important to delay. That’s why we’re doing everything possible to regain consistent and predictable access to all our federal funding so we can keep our workers on the job and deliver the reliable, modern rail transit Americans deserve.”

The Hudson Tunnel Project involves building nine miles of new passenger rail track between New York and New Jersey, including nearly five miles of tunnel boring to construct a new, two-tube tunnel under the Hudson River. It also will result in the rehabilitating of the existing North River Tunnel, which has been in service since 1910 and received serious damage from Superstorm Sandy.

Construction also is proceeding in Manhattan where The Hudson Yards Concrete Casing – Section 3 (HYCC-3) Project is building the final section of the rail right-of-way beneath Hudson Yards, which will connect the new tunnel into New York Penn Station. HYCC-3 is extending the concrete casing that has already been built from 11th Avenue to 30th Street, where it will connect to the new tunnel.

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