The Trump administration has lost another round in court Wednesday over funding for the Hudson Tunnel project, with a federal appeals court turning aside the administration’s attempt to halt payments for the $16 billion tunnel project.
After a federal judge ordered the White House to resume funding the $16 billion rail project temporarily earlier this year, the U.S. Department of Transportation filed an emergency appeal. A three-judge panel from the U.S. Court of Appeals for the Second Circuit rejected the appeal.
“In sum, because DOT has failed to demonstrate irreparable harm or any other circumstances warranting a stay pending appeal, its motion for such a stay is DENIED,” the judges wrote.
The ruling upheld a decision by U.S. District Judge Jeannette Vargas in February that had released funds withheld by the federal government since October. The Gateway Development Commission, which oversees the project, said on March 10 that construction had resumed but warned of potential future delays if the administration tries to block access to the full $16 billion previously committed by the federal government.
Gov. Mikie Sherrill, a vocal supporter of the project, said Thursday in reaction to the latest ruling that “just yesterday, we won for the fourth time in court, ensuring the Trump administration keeps funding the project every month, as it is legally obligated to do. We will continue to fight, and continue to win, if Donald Trump tries to illegally stop funding again.”
The Trump administration has objected to the project over concerns that the contracts awarded are inconsistent with civil-rights laws and the Constitution because they were given based on diversity, equity and inclusion considerations.
The Department of Transportation indicated that it was considering a further appeal, saying it was committed to ensuring taxpayer dollars “are being spent responsibly. We are considering all legal avenues” on taxpayers’ behalf.”
Separately, the Gateway Development Commission sued the federal government to unfreeze funding in the Court of Federal Claims. The Second Circuit judges said they expect a ruling in that case on March 12.
The Hudson Tunnel Project is building a new commuter rail tunnel connecting Manhattan and New Jersey and repairing a century-old tunnel used by more than 200,000 travelers and 425 trains daily. The existing tunnel, heavily damaged by Superstorm Sandy in 2012, needs emergency repairs that disrupt travel on the nation’s most heavily used passenger rail line. About $2 billion has been spent on the project.
