Trump Admin Drops Funding Appeal Against Gateway Project

The Trump administration has dropped its appeal of a ruling forcing it to disburse funds to the Gateway Project, surrendering its fight to put a stop to tunnel construction that would connect commuter railroads from Penn Station to Newark, NJ.

The news was first reported on by the New Jersey Monitor, which noted that the administration made the move on September 18. It represents an abrupt reversal of previous pledges by the Trump Administration to continue the appeal, one of which was made as recently as this summer. However, a separate legal fight initiated by the federal government over the project’s diversity contracting rules will remain ongoing.

The Gateway Project is supposed to shore up a transit tunnel system that was heavily damaged during Superstorm Sandy in 2012, resulting in fairly frequent service interruptions ever since. Local officials say that the overhaul is necessary to ensure the continued safety of commuters headed to and from New Jersey.

The federal government lost a court battle over the project in February, with a judge blocking administration officials from freezing $205 million worth of promised funds for the project. A total of $30 million was released immediately. Without this infusion, the $16 billion Gateway Project would have been essentially halted for good, given that roughly 1,000 layoffs had already occurred at the time of the ruling.

Officials with the Gateway Development Commission estimate that the project will create tens of thousands of new jobs, as well as generate nearly $20 billion in economic activity.

That injunction was made permanent by the same judge, the Hon. Jeannette A. Vargas, in late June; after further review, she described the blocking of funds as “flagrantly” illegal.

The Trump administration had offered various justifications for their freezing of the funds before the legal battle played out, including that contractors for the project adhered to what it described as “unconstitutional” Diversity, Equity, and Inclusion (DEI) rules.

Later, President Donald Trump himself indicated that his opposition to the project stemmed from his general disagreement with state political leadership, including U.S. Senator Chuck Schumer and other Democratic Party representatives. He also described the Gateway Project as a “boondoggle” numerous times.

Some political figures have since publicly celebrated the dropped appeal, including New Jersey Governor Mikie Sherrill. It has gone relatively unremarked upon by local New York politicians.

Despite its outsized economic impact, the Gateway Project didn’t come up at a September 21 press conference attended by President Trump at Gracie Mansion, which was held after he met with Mayor Zohran Mamdani while in town for the United Nations General Assembly.

“This victory brings us one step closer to the most urgent infrastructure project in the nation becoming reality–meaning more reliable transit for riders and nearly 100,000 jobs for workers,” Sherill wrote online.

U.S. Representative Tom Kean—a member of the GOP who represents a district that includes Newark—also made a point of issuing a statement proclaiming his support for the Gateway Project. As reported by the Monitor, the funding freeze has served as a potent political flashpoint, especially given that Kean is facing a tight reelection race against his Democratic opponent.