Trump administration begins releasing Gateway tunnel funds to NJ after court loss

💲 A federal appeals court upheld an order forcing the release of Gateway funds

💲 New Jersey and New York sued over a funding freeze they call unlawful

💲 1,000 workers were laid off when funds ran out

An order forcing the Trump Administration to release $205 million in Gateway Tunnel project funds was upheld by an appeals judge on Thursday, resulting in the federal government releasing $30 million of the total on Friday.

The U.S. Court of Appeals for the 2nd Circuit upheld a judge’s order requiring the release of the funds while an appeal of an injunction filed by New Jersey and New York is heard. A panel of judges will begin to review the case the week of Feb. 23.

The ruling also prevents the government from clawing back the funds should it win the appeal.

On Friday afternoon, Gov. Mikie Sherrill said federal officials had released "the first $30 million of the $20 million owed."

The Gateway Redevelopment Commission said that the ruling was a "positive step" and it expects to receive the reimbursement funds. It did not say when the thousand workers who were laid off when the funds ran out on Feb. 6 will return to work.

"Construction remains paused for now, and we are working with our contractors to plan how to deploy these funds in the most effective way and get workers back on the job to resume some construction as soon as possible," the commission said Friday afternoon.

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Sherrill vows more court action over funding freeze if needed

Acting state Attorney General Jennifer Davenport expected the Trump Administration to "swiftly comply with its legal obligations" and said continued delays would only add costs to the project to replace the 116-year-old rail tunnel.

“With the district court’s order now fully in effect, the Trump Administration can no longer continue its unlawful policy of freezing funding for the Gateway project. The Trump Administration’s funding freeze policy is plainly unlawful, and the Department of Justice has not even tried to defend its legality," Davenport said in a written statement.

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