Sherrill: Gateway tunnel funds flowing again after Trump freeze failed

Funding for the Gateway Tunnel project is moving again after a federal court ordered the Trump administration to release more than $200 million in withheld money, Gov. Mikie Sherrill said Wednesday.

Speaking to reporters in Flemington at a press conference Feb. 18, Sherrill said the ruling has allowed work to restart on a rail link she describes as central to the region’s economic life.

“Yes. As you know, this is a project that had about 1,000 people already employed,” she said when asked for an update on the Gateway situation. “It could lead to almost 100,000 jobs in the region. It has a huge economic impact of about $20 billion. And this is an area of the country responsible for about 20% of the nation’s GDP. So really, a huge jobs and economic driver. Not to mention the 200,000 commuters that take the tunnel every day to fuel a lot of business throughout the region.”

Sherrill portrayed the months-long freeze as both unlawful and economically reckless.

“So, the fact that the President of the United States, who, you know, has some pretty big economic and jobs challenges that he’s facing, would then further hit the economy like this, was bewildering and illegal,” she said. “We took him to court because I care deeply about jobs and the economy, even if the federal government doesn’t seem to. So, I took him to court: we won. He fought it again: we won. We have seen the funds released and he continues to remain in court – but we’re just seeing again and again that what he’s doing is illegal.”

According to Sherrill, the halt has already cost the project “millions of dollars” and shaken families who rely on the tunnel work.

“He’s put a lot of workers at risk, who had to go home and tell their family they think they’re out of a job, who worried about their healthcare,” she said. “As you know, any delay in healthcare, especially if you have some sick kids, and I was speaking to some workers who did, it’s all really horrible hits. Every single time Trump gets involved, the only person who seems to be making any money is him, at the expense of workers across the country.”

On Feb. 3, New Jersey and New York sued the Trump administration, accusing federal transportation officials of illegally freezing $15 billion in previously committed Gateway funding for the new Hudson River rail tunnels and the rehabilitation of the existing crossing between northern New Jersey and New York City.

Federal officials had, over several years, obligated roughly $15 billion in funding for the Hudson Tunnel Project to ensure the safety, reliability, and resiliency of core infrastructure.

On Sept. 30, the Trump administration announced it would “indefinitely suspend payment of all Project funds pending a newly-announced compliance review.”

Contractors stopped work on Feb. 6, when funding for active construction ran dry.

On Feb. 6, U.S. District Judge Jeannette Vargas issued a temporary restraining order requiring the Trump administration to immediately release more than $200 million in withheld funds. The order blocked the threatened shutdown and forced the restart of reimbursement payments.

The court found that the funding freeze was illegal, with Vargas noting that the suspension of construction would cause “immediate and severe” economic harm. The states had asked for exactly that kind of emergency relief, warning that a work stoppage would hit not just the Gateway Development Commission and the states themselves, but also the hundreds of thousands of people who depend on the tunnel each day.

The 2nd Circuit Court of Appeals declined to block Vargas’ order, allowing it to stand and forcing the administration to follow through. The administration began releasing funds on Feb. 13, allowing construction to resume.

Further hearings in the case are scheduled for late February.