Gateway Tunnel Project may resume after judge blocks Trump's funding freeze, for now
Construction on the Gateway Tunnel Project may resume after a federal judge temporarily blocked President Trump's freezing of federal funds for New York and New Jersey's $16 billion infrastructure project.
Work on the aging Hudson River tunnels was suspended at 5 p.m. Friday, but New York Attorney General Letitia James announced hours later that a temporary restraining order preventing the shutdown had been issued.
"This is a critical victory for workers and commuters in New York and New Jersey. I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on. The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference," James said in a statement from her office.
"The order issued this evening should ensure that nearly 1,000 workers will be able to keep their jobs and continue their work on the Tunnel, preserving the investments New Jersey and New York have made in this project and preventing further economic damage to our states, while next steps in the case play out," New Jersey Acting Attorney General Jennifer Davenport said, in part.
"GDC is pleased with the court's decision today. We thank our partners in New York and New Jersey for taking action to help us access the federal funding for the Hudson Tunnel Project. We are hopeful this means funding disbursements will resume soon, and we can restart site operations and get our workers back on the job," the Gateway Development Commission said in a statement.
The ruling is a temporary measure pending a hearing on Feb. 11 that will determine the next phase.
Local lawmakers react to ruling
New York Gov. Kathy Hochul released the following statement regarding Friday's ruling:
"Today, a judge affirmed what we've said from the start: our case against the Trump Administration is likely to succeed, and Donald Trump's attempt to rip away funding and derail the Gateway Tunnel project is likely to be found unlawful.
"This ruling is a victory for the thousands of union workers who will build Gateway and the hundreds of thousands of riders who rely on it every day. We will work to protect this decision and move as soon as possible to get work back on track.
"We will continue coordinating with our partners at the Gateway Development Commission and New Jersey to ensure the Administration follows the law and releases the funding New Yorkers are owed."
New Jersey Gov. Mikie Sherrill said in a statement, "I am thrilled that the court has granted temporary relief, lifting the freeze of billions of dollars of federal funding for Gateway. President Trump's arbitrary and politically motivated decision to freeze this funding is plainly illegal, and we will continue to pursue full relief so the nation's most urgent transportation project can keep moving forward — and workers can keep putting food on the table."
"This is great news for New York, New Jersey, our economy, our workers, and our commuters. Donald Trump should do the right thing and end the freeze to let Gateway move forward once and for all," Sen. Chuck Schumer said in a statement.
Trump administration sued over Gateway funding
President Trump abruptly froze federal funding for the project back in October. His administration is facing the lawsuit, filed on Tuesday, to permanently free up the funding, which was already approved by Congress.
In their arguments to get the temporary restraining order, New Jersey and New York said Congress already allotted the money and any stoppage would impact 200,000 people commuting through century-old tunnels.
"This is great news for New York, New Jersey, our economy, our workers, and our commuters. Donald Trump should do the right thing and end the freeze to let Gateway move forward once and for all," Senate Minority Leader Chuck Schumer said in a statement.
"So, we go to court and try to stop the White House from blowing up the project," said Rep. Josh Gottheimer. "Cut the political crap, do the right thing, keep these tunnels on track, and let's figure this out."
A hearing about the lawsuit had been scheduled for 1 p.m. at a New York City courthouse.
Democrats blast president over funding freeze
New Jersey Gov. Mikie Sherrill and other officials held a news conference at 11 a.m. in Weehawken, where Democrats blasted the president's decision and urged him to stop trying to withhold the funds.
"Every single time President Trump gets involved, our working men and women suffer," Sherrill said.
"He's gotta stop this nonsense. This is an economic issue, this is a working issue," said Rep. Frank Pallone Jr. "If it doesn't get built and soon continue, then we're talking about an economic crisis for people that have to go back and forth from work."
Union members affected by the looming construction shutdown were also in attendance. Officials said more than 1,000 workers would face layoffs.
"As of the end of the day, these sites may be empty and our brothers and sisters may not have a job to return to," said Robert Campos, with NJ Laborers 472.
Trump made demands for freeing up money, sources say
Sources familiar with the Gateway Project funding discussions in Washington told CBS News New York's political reporter Marcia Kramer the president is demanding naming rights of Penn Station in New York and Dulles Airport in Washington, D.C., in exchange for freeing up the funding.
"That's why we're going to jeopardize this project? It's insane," Rep. Robert Menendez Jr. said.
Pallone joked that he would name a superfund site or landfill after Mr. Trump instead.
Sherrill said the president never mentioned the requests in conversations she had with him.
"But there is no need to deal right now because what he's doing is illegal," the governor said.
New Jersey Sen. Cory Booker called it "petty vindictiveness of a president who seems to want his name on everything."
A source close to Schumer said "there is nothing to trade."
"The president stopped the funding, and he can restart the funding with a snap of his fingers," the source said.
New York Sen. Kirsten Gillibrand responded in a statement:
"No. This is ridiculous. These naming rights aren't tradable as part of any negotiations, and neither is the dignity of New Yorkers. At a time when New Yorkers are already being crushed by high costs under the Trump tariffs, the president continues to put his own narcissism over the good-paying union jobs this project provides and the extraordinary economic impact the Gateway tunnel will bring.
"I demand that the president put people first and unfreeze this project and all the others his administration has been holding hostage for his personal gain."
Gottheimer said he's trying to get Republicans on board to push the president to restore funding.
"I'm talking to my colleagues, Democrats and Republicans. I was just on the phone a minute ago with the White House, continuing to talk with my colleague on the other side of the aisle and try to work this out," he said.
CBS News New York reached out to the White House for comment, but we have not heard back.
White House says Democrats are to blame
Last week, a White House spokesperson blamed Schumer and Democrats for "standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration."
"For the good of New York, New Jersey, our economy, and union workers, the only thing to do is for President Trump to release the legally approved funds now," Schumer said Thursday.
Stopping construction costs more money, jobs
The project is supposed to expand the commuter rail tunnels between New York and New Jersey. It is also set to upgrade the 100-year-old Amtrak tunnels for trains traveling between Boston and Washington, D.C.
Construction workers at the Hudson Tunnel worksite in the city's Chelsea neighborhood said on Thursday that they had no idea if or when they would return.
"We are the pawns between both parties. They're arguing, and at the end of the day, who gets hurt? The workers," shop steward Guido Rivieccio said.
Officials also said dismantling, securing and shutting down construction could cost an additional hundreds of thousands of dollars.
