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Gateway Tunnel Funding Remains on Hold as Trump Administration Appeals Court Ruling

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Published on February 13, 2026
Gateway Tunnel Funding Remains on Hold as Trump Administration Appeals Court RulingSource: Wikipedia/Joe Ravi, CC BY-SA 3.0, via Wikimedia Commons

The Gateway Tunnel Project remains stalled despite a federal judge ordering the release of $205 million in federal funds previously withheld by the Trump administration. The funds have not yet been disbursed as an appeals court has scheduled a hearing for February 23. CBS News reports that New Jersey Governor Mikie Sherrill criticized the delay, calling for the release of the funds to allow the project to proceed.

Despite the judge’s ruling, the Gateway Tunnel Project remains on hold, with potential impacts for workers and the broader community. The initial halt led to the loss of roughly 1,000 jobs, and a prolonged pause could put an estimated 11,000 construction jobs and 95,000 related positions at risk. The legal dispute highlights tensions between federal authority and state officials advocating for the project. The Department of Transportation has requested a stay of the restraining order, citing concerns that disbursing the funds could result in irretrievable losses if the government prevails on appeal, according to CBS News.

Sources reported that the Trump administration sought naming rights to Penn Station in New York and Dulles Airport in Washington, D.C., as a condition for releasing the Gateway Tunnel funds. Governor Mikie Sherrill and labor leaders criticized the administration’s approach, emphasizing the potential impact on workers. ABC7NY reports that Sherrill stated she had won a court ruling ordering the release of the funds, which have not yet been disbursed.

With another court date scheduled for March 12, the Gateway Tunnel Project remains on hold, affecting commuters and the regional transportation network. The project, which would add two new rail tubes under the Hudson River, is considered critical for maintaining rail service and preventing potential disruptions. Senate Minority Leader Chuck Schumer and New Jersey state officials have called for the release of funds, emphasizing the legal and economic importance of resuming work, as reported by ABC7NY.