NY-NJ Tunnel-Funding Lawsuit Largely Dismissed After Funds Paid

March 12, 2026, 6:23 PM UTC

A judge dismissed most of a lawsuit against the Trump administration for freezing money earmarked for the Gateway tunnel under the Hudson River, after the US government made the disputed payments and work resumed on the $16 billion project.

The US Department of Transportation withheld about $205 million from the Gateway Development Commission starting in October while the administration reviewed compliance with its new rule barring race- and sex-based contracting requirements. Last month, work was halted for about two weeks, until a court ordered payments to be made.

The breach-of-contract suit Gateway filed in the US Court of Federal Claims ...

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