NEW YORK CITY, New York — New York officials say nearly $130 million in previously frozen federal funds for the Gateway tunnel project have been released after a court order required the Trump administration to disburse the money.
New York Attorney General Letitia James said the funding had been unlawfully withheld and confirmed Wednesday that the money was transferred following judicial intervention. “This funding freeze was unlawful from the start,” James said, adding that the state moved quickly in court to restore the payments.
The dispute centers on federal funds allocated to New York and New Jersey for the long-delayed Gateway tunnel project, a major infrastructure effort intended to improve rail connections between the two states. Last week, a judge’s order took effect requiring the administration to release the funds, though state officials initially reported continued delays.
The administration maintained the payments were being processed through the Treasury Department’s system after the Presidents Day holiday. With the funds now reportedly released, further immediate court intervention appears unnecessary.
President Donald Trump has publicly criticized the tunnel project, calling it a “future boondoggle” and insisting the federal government would not cover any cost overruns. The broader legal battle remains ongoing and could return to appellate court in the coming weeks.
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