Trump Administration Releases the Last $127 Million for the Gateway Tunnel After Losing in Court

The administration released the remaining $127 million in frozen federal reimbursements for the Hudson River Gateway rail tunnel project on February 18, 2026, out of roughly $205 million withheld since October 2025. The release followed a federal appeals court decision earlier that month allowing a district judge's order to take effect. The Gateway Development Commission said it would notify contractors the same day and that construction would resume the following week, while continuing to pursue its lawsuit. New Jersey Governor Mikie Sherrill said the freeze had idled about 1,000 construction workers.

The episode is a test case for whether an administration can withhold reimbursements for a congressionally funded infrastructure project and how quickly courts can force release once they rule. The money moved only after appellate review cleared the district court's order.

The commission's underlying suit continued. In March 2026 a federal judge partially dismissed the commission's claims, which reporting indicated could reopen the possibility of a clawback.