"Work on the $16 billion effort, which will create a new two-tube rail tunnel between Penn Station and New Jersey, was temporarily halted in January after the Gateway Development Commission (GDC), the authority in charge of construction, ran out of federal funds. GDC said it needed $205 million in federal reimbursements by Feb. 6 in order to keep construction going, but the feds did not pay up on their own."
"The judge ruled last month that the government must temporarily fund Gateway as a suit from New York and New Jersey Attorneys General Letitia James and Jennifer Davenport over the Trump administration's October move to halt funding plays out. During oral arguments on Tuesday in front of the U.S. Court of Appeals for the Second Circuit, Assistant U.S. Attorney Tara Schwartz argued to a three-judge panel that the Trump administration would face irreparable harm if forced to fund the project."
"We may be paying money we may not need to pay, Schwartz told the judges. She said she believed the feds wouldn't be able to recoup the money they paid out if it was ultimately decided they weren't obligated to fund the project."
The Gateway Tunnel rail project, a $16 billion effort to build a new two-tube tunnel between Penn Station and New Jersey, resumed work last week after a month-long pause caused by depleted federal funds. The Gateway Development Commission needed $205 million in federal reimbursements by February 6 to continue construction. A federal judge compelled the Trump administration to provide $235 million in temporary funding. However, the administration appealed, arguing it would face irreparable harm if forced to fund the project while litigation continues. The government must release additional funding by late March or early April, with a permanent decision expected on April 16.
Read at www.amny.com
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