On Friday, just hours after the nation’s most significant infrastructure project in more
than a century began winding down under a funding freeze ordered by President
Donald Trump, New Jersey and New York secured the ruling they were seeking: A
temporary restraining order from U.S. District Judge Jeannette Vargas.
In her 11-page decision, Vargas wrote that “the public interest would be harmed by a
delay in a critical infrastructure project” and ordered the release of $205 million in
federally appropriated funds. But the relief is only temporary — the judge did not
indicate how long the TRO will remain in place.
A hearing scheduled for Tuesday may offer the first clues about what comes next.
What remains unknown is when work on the $18 billion Hudson Tunnel Project,
overseen by the Gateway Development Commission, will resume. The project, slated
for completion in 2035, is considered essential to the region’s economy and daily
commuter flow — and has already generated billions in economic activity and tens of
thousands of jobs.
The effort includes constructing two new Hudson River tunnels and repairing the
existing 116‑year‑old tunnels, which continue to deteriorate after extensive damage
from Hurricane Sandy. Federal funding has been frozen since last fall, when the
Department of Transportation announced an indefinite review tied to potential
DEI‑related contracting violations — a move many leaders, including Acting N.J.
Attorney General Jennifer Davenport, view as politically motivated retribution.
This weekend, BINJE got insights from Jerry Keenan, president of the N.J. Alliance for
Action, about the ruling, the disruption, and what the path forward may look like.
BINJE: It has been a crazy weekend. On Friday, the “wind down” orders were issued
for the Hudson Tunnel Project and work all but stopped. Then, late Friday, a federal
judge issued a temporary restraining order to lift the federal funding freeze. What does
all this mean?
Jerry Keenan: The immediate impact is still a bit uncertain because the ruling does not
immediately compel the government to release the funds. So, there will still be silence
where there should be progress. We aren’t talking about planning delays; we are talking about a hard stop on active construction.
Approximately 1,000 tradespeople — from skilled laborers to engineers — have
effectively received layoff notices, even if temporary. To halt a project of this magnitude
when the federal funding agreement was already signed creates an artificial crisis with
very real casualties.
BINJE: Reports suggest the funding freeze was tied to political demands, including
renaming Penn Station after President Trump. As a non-partisan advocate, how do you
respond to that?
JK: Infrastructure is an asset, not a poker chip. The Alliance has spent more than five
decades advocating for responsible development regardless of who is in the White
House or Statehouse in Trenton. Our focus is solely on restarting the project. And this
project will be completed; it’s just a shame that politics is costing working men and
women paychecks.
BINJE: Beyond the politics, there is a legal argument regarding the “Full Funding Grant
Agreement.” Why does that contract matter to the broader business community?
JK: Alliance Sr. Vice President Chris Hartman and I were invited to the full funding
agreement signing on a hot July afternoon in 2024. The agreement matters because
business runs on certainty. The federal government signed a binding contract to fund
this work. If Washington can arbitrarily renege on a signed Full Funding Grant
Agreement, it sends a chilling signal to every sector of the economy.
Private investment requires a reliable public partner. Right now, that reliability is broken.
BINJE: You and others (including Gov. Mikie Sherrill) have warned that “stopping and
starting” a megaproject like this is a financial disaster with implications that go far
beyond this week or this month. Can you explain the hidden costs of this delay?
JK: You cannot turn a $16 billion heavy infrastructure project off and on like a light
switch. Demobilization costs millions. Equipment sits idle. Equipment is moved to other
jobs. Specialized crews move on to other jobs across the country, and we lose that
talent. Every day of delay adds to the final price tag through inflation and remobilization
fees.
A shutdown unravels a carefully sequenced construction operation that took years to
design, permit, and mobilize. We’re burning taxpayer money by doing nothing.
BINJE: We talk about the economics, but what about the physical risk?
JK: We’re relying on a 116-year-old, single-point-of-failure tunnel that was severely
compromised by Superstorm Sandy. It’s degrading daily. If that tunnel fails before the
new one is built, the Northeast Corridor shuts down. This isn’t a “nice to have” project; it
is an engineering necessity. We’re racing against time, and this week, we just hit the
brakes.
BINJE: The Gateway Development Commission and the states of New York and New
Jersey won an important victory Friday evening with that temporary restraining order.
What is the Alliance’s position?
JK: We stand firmly behind the Gateway Development Commission, which has been an
unbelievable partner in this process, and, of course, the Attorneys General. This isn’t
about partisanship; it’s about probity.
The Alliance represents both labor unions and business leaders, and on this issue, they
speak with one voice: Honor the contract. We need to get back to work — not next
month, not after a ceremony, but immediately. And the hope here is we can see a clear
path to restarting this week.
