Judge rules against Trump and decision to stop Gateway Tunnel funds

(USA TODAY Network via Reuters Connect) – A federal judge sided with New Jersey and New York, saying the Trump administration’s decision to suspend payments for construction of the Hudson River rail tunnels was “contrary to law,” the opinion read.

“We are grateful that a federal court has once again agreed that the Trump Administration’s decision to freeze billions of dollars in grants for the Gateway Tunnel Project is flagrantly unlawful,” said a statement praising the June 29 decision from New Jersey Gov. Mikie Sherrill and New York Gov. Kathy Hochul, both of whom directed their attorneys general to sue the U.S. Department of Transportation in February.

“This victory sends a clear message: the Trump Administration’s attempt to halt Gateway funding will not stand,” the statement continued.

In response to an email seeking comment about whether they will appeal the decision, written by Judge Jeannette Vargas, a response arrived from an unnamed person through the generic U.S. DOT’s press office that said, “USDOT remains committed to ensuring hardworking taxpayer dollars are being spent responsibly and do not fund unconstitutional, discriminatory contracting practices.”

This case stems from the U.S. DOT’s Sept. 30 decision to pause federal reimbursements to the Gateway Development Commission, the bistate agency leading the $16 billion tunnel projects. While that funding was paused, the Gateway commission tapped a line of credit to pay contractors, salaries and other expenses while it tried to work with the U.S. DOT about its concerns regarding a minority contractor program, though President Donald Trump made multiple comments and posts that his intention was to end the construction projects to retaliate against Democrats. Multiple projects were also delayed and could extend the timeline of the 15-year program.

The U.S. DOT never issued a conclusion to this inquiry, and the Gateway commission eventually ran out of money in February, forcing the agency to shut down its construction sites and lay off nearly 1,000 workers. That’s when the two states sued and the Gateway commission brought a separate lawsuit in the Court of Federal Claims, which is ongoing.

In that latter case, the Gateway commission can seek to recoup money from the federal government for the tens of millions in expenses it incurred from having to shut down and secure the construction sites and interest on a line of credit.

“Our case has always been about seeking prospective relief − to end the unlawful funding freeze and get workers back on the job. The Gateway Development Commission has a separate case about money damages, and we defer any questions on seeking damages to them,” NJ OAG spokesman Michael Symons said.