Court Clears Way for Release of $205 Million for Hudson Tunnel Project

A U.S. appeals court decision has paved the way for the release of $205 million in previously frozen federal funding for the $16 billion Hudson Tunnel Project, a critical rail infrastructure initiative connecting New York and New Jersey. The funding freeze, imposed by President Donald Trump since October 1, forced construction to halt last week and left around 1,000 workers out of jobs. U.S. District Judge Jeannette Vargas had earlier ordered the government to release the funds, and the Second Circuit Court of Appeals declined to block that ruling while referring the case to a panel of judges for further review later this month.

New York Attorney General Letitia James welcomed the development, insisting the administration lacked authority to freeze the funds and must now act without delay. The U.S. Transportation Department had warned it would be required to release the money unless the court intervened, while the White House referred inquiries to the Justice Department, which did not immediately comment. The Gateway Development Commission, which oversees the project, said it is preparing to deploy the funds quickly to resume construction and bring workers back to job sites.

The Hudson Tunnel Project aims to build a new commuter rail tunnel under the Hudson River and rehabilitate an existing century-old tunnel severely damaged by Hurricane Sandy in 2012. Serving more than 200,000 daily passengers and 425 trains, the corridor is the busiest passenger rail line in the United States and frequently faces disruptions due to ongoing emergency repairs. The project received roughly $15 billion in federal support during the Biden administration, with nearly $2 billion already spent, underscoring its importance to regional transportation and economic stability.

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