New York tunnel project expects to receive frozen US funding after court order
Source: Reuters
February 12, 2026 5:25 PM EST Updated 9 hours ago
Feb 12 (Reuters) - The commission overseeing the $16 billion Hudson Tunnel Project in New York said on Thursday it expected to soon receive $205 million in frozen federal funding after a U.S. appeals court did not undo a lower court order. The funding freeze forced a halt to construction last week, putting 1,000 workers out of work.
U.S. District Judge Jeannette Vargas last week issued a preliminary injunction that required the federal government to release funds for a project to overhaul critical rail infrastructure in New York and New Jersey that had been frozen by President Donald Trump since October 1. The Second Circuit U.S. Court of Appeals said on Thursday it would refer the case to a panel of judges later this month, but did not enter an order sought by the government blocking Vargas' ruling from taking effect.
New York Attorney General Letitia James said the Trump administration must immediately release funding for the project. "This administration never had the authority to freeze this funding, and it no longer has any excuse to delay," James said after the lower court order was upheld.
The U.S. Transportation Department did not immediately respond to a request for comment. It earlier warned that without a court order putting Vargas' ruling on hold it would have to release the funds. The White House referred questions to the Justice Department, which did not immediately comment.
Read more: https://www.reuters.com/world/us/new-york-tunnel-project-expects-receive-frozen-funding-2026-02-12/
The judge had put her earlier order on the unfreezing of funding "on hold" until yesterday pending a 2nd Circuit review. The 2nd Circuit indicated that they will review later this month but did not block the order to unfreeze requested by 45.
REFERENCES
https://www.democraticunderground.com/10143610455
https://www.democraticunderground.com/10143612216
https://www.democraticunderground.com/10143612607
https://www.democraticunderground.com/10143613610
https://www.democraticunderground.com/10143613897
