"The Trump administration will have to temporarily resume funding the Gateway tunnel rail project for two weeks, following a stay from a Manhattan federal judge on Friday, allowing construction that was set to halt on Feb. 6 to continue. U.S. District Judge Jeannette A. Vargas's decision came five hours after a Friday afternoon hearing in a suit brought by New York Attorney General Letitia James and her New Jersey counterpart, Jennifer Davenport, earlier this week."
"The states argue the feds are illegally withholding the funds because the move was for political reasons rather than based on any legal merits citing Trump's Truth Social posts framing the freeze as political retribution against Congressional Democrats. Vargas's decision said she believed the states would suffer irreparable harm if she didn't force the U.S. Department of Transportation (USDOT) to temporarily unfreeze funding to the project. She requested the parties meet and confer over next steps in the case by Feb. 11."
"The USDOT froze federal funding for the $16 billion project, amounting to $11 billion in grants and $4 billion in loans, on the basis that it needed to review compliance with new rules around contracting with minority-and-women-owned businesses. Court filings state that the entity overseeing the project the Gateway Development Commission (GDC), has provided the federal government with the information it requested."
A Manhattan federal judge issued a stay requiring a temporary two-week resumption of federal funding for the Gateway tunnel rail project to prevent construction from halting on Feb. 6. New York and New Jersey attorneys general sued, alleging the federal funding freeze was politically motivated and citing social media posts by the president. The judge found potential for irreparable harm and ordered the parties to confer on next steps by Feb. 11. The U.S. Department of Transportation had frozen $15 billion in grants and loans while reviewing compliance with new minority-and-women-owned business contracting rules. Court filings state the Gateway Development Commission provided the requested information, and New York's attorney general called the court action a critical victory for workers and commuters.
Read at www.amny.com
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