Federal funding for the $16 billion Gateway Tunnel project, the rail expansion connecting New Jersey and New York, has been stalled again following a series of federal court decisions that have halted construction. The Trump administration initially froze funding in late 2025, citing the need to review the project amid concerns about what it described as “unconstitutional” federal spending tied to Diversity, Equity, and Inclusion initiatives. The freeze immediately halted major construction activity and led to the furlough of roughly 1,000 union workers associated with the project.
The delay highlights the already fragile state of the existing infrastructure. The current North River Tunnels, built in 1910, are now 116 years old and suffered extensive saltwater damage during Superstorm Sandy in 2012. Experts have long warned that the crumbling tubes are a “single point of failure” for the entire Northeast Corridor.
The situation escalated last week when U.S. District Judge Jeannette Vargas issued a Temporary Restraining Order on Friday, Feb. 6, ordering the federal government to unfreeze the money.
Vargas ruled that delaying the project posed a significant risk to the public and regional infrastructure.
“Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project and would suffer irreparable harm in the absence of an injunction,” Vargas said, according to NJ Spotlight News.
However, the ruling was short-lived. On Monday, Feb. 9, Vargas issued a stay on her own order, pausing the release of funds until 5 p.m. on Thursday, Feb. 12, to give the Trump administration time to appeal the decision to the U.S. Court of Appeals for the Second Circuit. As of now, the funding remains frozen while the legal fight continues.
The political battle surrounding the tunnel has intensified alongside the court fight. Reports from Reuters and The New York Times alleged that President Donald Trump offered to unfreeze the funding if Senate Majority Leader Chuck Schumer agreed to rename Penn Station “Trump Station” and Washington Dulles International Airport “Trump International.” Schumer forcefully denied the claim.
“Absolute lie. He knows it. Everyone knows it. Only one man can restart the project, and he can restart it with the snap of his fingers,” Schumer said in a statement reported by Reuters.
New Jersey Governor Mikie Sherrill, who took office earlier this year, has made restoring Gateway funding a central priority for her administration.
“President Trump’s arbitrary and politically motivated decision to freeze this funding is plainly illegal,” Sherrill said, according to CBS News. “The illegal attack on the Gateway Tunnel is yet another example. New Jersey will not back down from this fight.”
New York Attorney General Letitia James also criticized the freeze, calling it a “senseless” act that “threatened to derail a project our entire region depends on,” according to Politico.
Beyond the political and legal battle, the project carries significant implications for Monmouth County and Monmouth University students. With nearly 30% of Monmouth’s student body hailing from out of state, many from New York, and hundreds more relying on the city for summer internships, the tunnel is a critical lifeline.
In January 2026, Netflix finalized its purchase of the Fort Monmouth mega-studio complex, a development expected to increase travel demand between New Jersey and New York as production ramps up. Students say the tunnel’s expansion would directly affect access to careers and regional growth.
“The project is a vital step in helping expand and improve the transit system that would benefit Monmouth students due to a greater connection being developed between NYC and Monmouth County,” said Moises Meza, a senior communication major. “Funding shouldn’t be restricted to projects such as this one, especially with the development occurring at the Monmouth Mall and the new Netflix studios at Fort Monmouth. These connections are too important to the university and the local community to be held up.”
Others pointed to the daily commuter strain already affecting students and workers traveling into the city.
“Halting this project is only going to bring harm to commuters in the area,” said Xavier Santangelo, a junior communication major. “Driving into the city already takes up enough time with traffic. Having more railways from New Jersey would benefit people commuting to work and reduce the number of cars on the highway. Those making these decisions need to put their differences aside and think about the people this will affect.”
The Gateway Tunnel project is intended to modernize the century-old rail infrastructure beneath the Hudson River and expand capacity along the Northeast Corridor, which currently carries more than 200,000 passenger trips daily.
For now, the project’s future remains uncertain as federal appeals proceed ahead of Thursday’s deadline.
