A federal judge in the United States has protected Hudson Tunnel Project funding, permanently blocking the Department of Transportation (USDOT) from holding back future grant payments for the $US 16bn project in New York.

Hudson Tunnel Project construction site in North Bergen
Official project image showing construction work at the Hudson Tunnel Project site in North Bergen, New Jersey. Photo: Gateway Program / Gateway Development Commission

Court ruling protects Hudson Tunnel Project funding

District judge Jeanette Vargas issued the decision on June 29⁠. It effectively makes permanent a temporary restraining order issued on February 6 in a legal action filed jointly by New York and New Jersey. A panel of judges will now review the case to determine whether the law was applied correctly.

According to the ruling, the Trump administration breached federal regulations that apply to the suspension of infrastructure grants that had already been obligated. Vargas wrote:

“Defendants do not dispute that the suspension of federal grants flagrantly violates federal law,”

“The Court rejects the notion that the States are without a remedy in such a situation.”

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The judge also dismissed USDOT’s argument that the matter should be heard only by the US Court of Federal Claims because it stemmed from grant agreements connected to the Gateway Development Commission (GDC)⁠, the delivery body of the Hudson Tunnel Project.

Gateway Development Commission seeks damages

GDC was forced to pause work temporarily on February 6⁠, with the immediate loss of 1000 jobs. The commission is now pursuing a separate case against USDOT seeking monetary damages sustained during the enforced shutdown of the project.

Catherine Rinaldi, executive vice-president at GDC, said:

“Prior to the freezing of federal funding, the Hudson Tunnel Project was on schedule and on budget, and we have made significant progress since federal funding for the project resumed in February,”

Manhattan Tunnel Project construction area by the Hudson River
Official project image showing work on the Manhattan Tunnel Project and Hudson River construction area. Photo: Gateway Program / Gateway Development Commission

The Hudson Tunnel Project covers two linked works: building nine miles of new passenger rail track between New York and New Jersey, including nearly five miles of tunnel boring for a new two-tube tunnel under the Hudson River, and rehabilitating the North River Tunnel, which has been in service since 1910. The Gateway Program says the new tunnel is scheduled to open in 2035, with North River Tunnel rehabilitation due for completion in 2038. Once finished, the crossing is expected to have four modern tracks instead of the current two.

USDOT has not indicated whether it will appeal to the Supreme Court if Vargas’ ruling is confirmed.

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