Trump Administration Drops Appeal Blocking Gateway Tunnel Funding

The Trump administration dropped a legal appeal to block federal funding for the $16 billion Gateway tunnel project, which connects New York and New Jersey. The decision follows a June ruling by a federal judge who determined that withholding funds from the project flagrantly violated the law.

The project involves constructing a new two-track rail tunnel beneath the Hudson River and rehabilitating the existing North River Tunnel, which suffered damage during Hurricane Sandy. The administration had previously frozen funding in September 2025, leading to lawsuits from New York and New Jersey. The new tunnel is scheduled to open in 2035.

While the government dismissed its challenge to the funding, the U.S. government and the Gateway Development Commission have requested a six-month halt to a separate lawsuit at the U.S. Court of Federal Claims to prioritize settlement efforts. Governor of New Jersey Mikie Sherrill praised the outcome, stating the legal victory benefits millions of commuters and will create nearly 100,000 jobs.