
"The Second Circuit Court of Appeals referred the federal government's appeal of U.S. District Court Judge Jeannette Vargas's decision that it must temporarily release funds it has withheld from the project since October to a motions panel on Feb. 12. The higher court's decision to refer the appeal to another panel of Second Circuit judges, rather than ruling itself, means Vargas' decision last Friday will automatically go into effect."
"This is good news for the Hudson Tunnel Project, and we anticipate receiving the $205 million in reimbursement funds from the federal government, GDC said in a statement. While this is a positive step, we need consistent, reliable access to the Hudson Tunnel Project's federal funding moving forward. GDC continues to pursue all avenues to regain access to all the federal funds for this urgent project, including our lawsuit."
A federal appeals court declined to overrule a lower court's Feb. 6 order, compelling release of over $200 million for the Gateway Tunnel rail project. The Second Circuit referred the government's appeal of U.S. District Court Judge Jeannette Vargas's decision to a motions panel scheduled for Feb. 12, and by referring the case the lower-court ruling automatically goes into effect. The funds have been withheld since October, and the federal government is expected to release the money imminently, with the motions panel unlikely to meet before the week of Feb. 23. The Gateway Development Commission said it anticipates receiving $205 million in reimbursements, emphasized the need for consistent federal funding, and said it will pursue all avenues, including litigation, to regain access to funds. The White House did not respond to a request for comment. Once reimbursements begin, construction on the $16 billion Hudson Tunnel project can resume.
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