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Friday, April 3, 2026

Biz community applauds ruling that federal government must unfreeze funding for tunnel project

As expected, a federal judge on Friday night ordered the Trump administration to
restore funding for the Hudson Tunnel project.

And as expected, the New Jersey business community was thrilled about.

“This seemingly means the more than 1,000 workers laid off yesterday will head back to
work,” Jerry Keenan, President of the New Jersey Alliance for Action told his members.

The order by U.S. District Judge Jeannette Vargas found that New Jersey and New
York could face serious harm if the pause in funding were to continue. The temporary
restraining order requires the Trump administration to resume funding while the lawsuit
is adjudicated.

The expectation now is that the Trump administration will continue to battle on the
issue.

This weekend, however, it is a big win for the project.

“This ruling affirms what we have long known: Gateway is essential to our region’s
economy and to the millions of commuters who depend on reliable rail service every
day,” New Jersey Chamber CEO Tom Bracken said.

“We applaud the Sherrill Administration and our Congressional delegation for its strong
leadership and unwavering advocacy on behalf of New Jersey’s workers, businesses,
and riders. Thanks to that leadership, this critical project remains on track.”

Choose New Jersey also offered praise.

“The Gateway Tunnel project is not a “nice to have” — it is a critical infrastructure
investment that underpins New Jersey’s long-term economic competitiveness,
workforce mobility and ability to attract and retain employers, while also strengthening
the economic engine of the entire Northeast Corridor and the nation,” it said.

“Modern infrastructure is central to New Jersey’s value proposition, making this work
foundational to our economic future and access to major U.S. markets. As a linchpin of
the regional and national economy, Gateway will provide the reliability and connectivity
businesses expect when making long-term location and expansion decisions.”

The ruling came from one of two lawsuits related to the case.

Gov. Mikie Sherrill stressed the decision was simply about following the law.

“President Trump’s arbitrary and politically motivated decision to freeze this funding is
plainly illegal, and we will continue to pursue full relief so the nation’s most urgent
transportation project can keep moving forward — and workers can keep putting food
on the table,” she said.

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