While the work resumed after a pause of nearly three weeks, the case dragged on, with the administration claiming that New Jersey and New York did not have standing to challenge the freeze.
“Defendants do not dispute that the suspension of federal grants flagrantly violates federal law,” Vargas wrote, later adding: “Indeed, other than the section headings in their briefs … Defendants make no attempt to justify their actions as consistent with the governing federal regulations. They have therefore waived any argument to the contrary.
The Transportation Department (USDOT) initially claimed it was withholding the money while it assessed whether the Gateway Development Commission (GDC) was complying with federal anti-discrimination laws in the awarding of contracts on the project.
However, Vargas cited Trump’s own statements that he was punishing Senate Minority Leader Chuck Schumer (D-NY), a longtime backer of the project, for his role in forcing a government shutodown that lasted more than six weeks.
“We’re cutting a $20 billion project that Schumer fought for 15 years to get, and I’m cutting the project,” the president told Fox Business Network host Maria Bartiromo Oct. 17. “The project is gonna be dead. It’s just pretty much dead right now.”
The funding freeze went into effect in February despite the Transportation Department never determining whether the GDC was flouting civil rights law. The commission is pursuing separate litigation against USDOT for monetary damages over the forced suspension of the project.
“We are grateful that a federal court has once again agreed that the Trump Administration’s decision to freeze billions of dollars in grants for the Gateway Tunnel Project is flagrantly unlawful,” New Jersey Gov. Mikie Sherrill, Attorney General Jennifer Davenport, New York Gov. Kethy Hochul, and Attorney General Leticia James said in a joint statement.
“This is the most important infrastructure project in the nation, and thanks to our litigation, 1,000 people are back on the job and construction continues every day. This victory sends a clear message: the Trump Administration’s attempt to halt Gateway funding will not stand.”
A USDOT spokesperson said the department was “committed to ensuring hard-working taxpayer dollars are being spent responsibly and do not fund unconstitutional, discriminatory contracting practices.”
