NEW YORK (AP) – A significant ruling by a federal judge has mandated the Trump administration to reinstate funding for a crucial rail tunnel project connecting New York and New Jersey. This decision comes as construction was poised to halt due to the federal funding freeze, a move aimed at quelling an ongoing infrastructure initiative.

Months prior to this ruling, the Trump administration had announced a suspension of $16 billion in support for the project. The justification behind this abrupt halt pointed towards the government shutdown that had occurred and what officials cited as concerns regarding unconstitutional spending associated with diversity, equity, and inclusion principles.

U.S. District Judge Jeannette A. Vargas, based in Manhattan, granted a temporary restraining order to both New York and New Jersey, effectively preventing the administration from withholding the funds. This order allows the states to pursue a preliminary injunction to ensure that the necessary financing continues to flow during the ongoing litigation.

In her ruling, Judge Vargas expressed that without such an injunction, the plaintiffs would face irreparable harm. She emphasized the significant public interest at stake, stating that a delay in this vital infrastructure project would adversely affect the community. The White House and the U.S. Department of Transportation have yet to provide comments regarding this ruling.

New York Attorney General Letitia James heralded the judge's decision as a significant win for both workers and commuters across New York and New Jersey. In a statement, she expressed gratitude for the swift judicial action that prevented a detrimental freeze on funding, highlighting the importance of the Hudson Tunnel Project as an essential infrastructure project for the region. She affirmed that efforts would continue to minimize federal interference in the construction process.

Prior to the ruling, the governing body of the project, the Gateway Development Commission, had indicated that construction would cease late Friday afternoon due to the funding withdrawal. This stoppage would result in an immediate loss of approximately 1,000 jobs, with even more projected job losses in the future. While it remains uncertain when construction can resume, the commission stated that operations will restart as soon as funding is reinstated.

The proposed new tunnel aims to alleviate the congestion experienced by an existing tunnel over 110 years old, which facilitates Amtrak and commuter train traffic between New York and New Jersey. Recent legal actions taken by New York, New Jersey, and the Gateway Development Commission sought to reinstate federal support that had been previously halted by the Trump administration.

This funding suspension was perceived as a political maneuver by the Trump administration to exert pressure on Democratic Senate Minority Leader Chuck Schumer from New York, whom the administration held responsible for a prior government shutdown. This shutdown was subsequently resolved a few weeks later.

In a related incident, President Trump mentioned during an Air Force One press interaction that he would consider unfreezing the funding for the tunnel project if Schumer agreed to rename Penn Station in New York and Dulles International Airport in Virginia after him. Schumer, however, refuted these claims, asserting that it was untrue and emphasizing that only Trump had the authority to restart the project promptly.

During a hearing regarding the lawsuit filed by the states, Shankar Duraiswamy from the New Jersey Attorney General’s Office articulated the urgent need for relief, citing the ongoing harm and financial costs that would arise from pausing the construction. He highlighted the ongoing excavation in North Bergen, New Jersey, claiming that discontinuing work would result in substantial safety and public health threats, arguing that any prolonged halt could jeopardize the project's future.

Conversely, Assistant U.S. Attorney Tara Schwartz, arguing for the government, countered the claims made by the states, pointing out the lack of clarity regarding how long the Gateway Development Commission could maintain the construction sites. While Duraiswamy acknowledged they could sustain operations for a limited time, he underscored the immediate need to prevent extended downtime that could delay the project further and exacerbate existing train delays due to the old tunnel.