Gateway Tunnel: Trump administration must continue payments on $16 billion project, appeals court rules
NEW YORK (WABC) — Payments on the $16 billion Gateway Tunnel must continue, an appeals court ruled on Wednesday, rejecting the Trump administration’s attempt to halt payments for the project.
A three-judge panel of the Second U.S. Circuit Court of Appeals said if the lower-court temporary restraining order was overturned pending an appeal, the federal Transportation Department would be free to suspend future payments and “tunnelconstruction sites will become inactive, posing serious risk of injury and deterioration that the states, at considerable expense, will become responsible to safeguard against.”
U.S. District Judge Jeannette Vargas previously ordered the federal government to release funds for the project in February and the Justice Department had asked to put her ruling on hold pending its appeal.
TheGatewayDevelopment Commission said construction “has fully resumed” – but warned it will have to pause construction again in two to three monthsif federal funding disbursements do not continue.
The freeze on funding prompted the Gateway Commissioner, New Jersey and New York to file separate federal lawsuits.
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