Gateway case goes before federal appeals court

A case challenging the Trump administration’s funding freeze of the Gateway tunnel project went before a federal appeals court on Tuesday as New Jersey seeks to restore full funding to the massive project.

The White House froze funding for the $16 billion project last fall, prompting New Jersey and New York to sue. A federal judge ordered the Trump administration to release temporary construction funds while that suit makes its way through the courts — and though it appealed that ruling, the White House had to pay $205 million after the U.S. Court of Appeals for the Second Circuit declined to intervene. 

Instead, the Second Circuit opted to hear the case on Tuesday.

A three-judge panel appeared poised to agree with the order resuming funding, according to the Courthouse News Service. The judges said that a more precise breakdown of the funding between grants and loans would help determine whether a temporary resumption in funding would constitute “irreparable harm” for the White House. 

“This morning, my office continued our defense of the Gateway Tunnel project at the Second Circuit,” Attorney General Jennifer Davenport said. “The Trump Administration’s decision to appeal and fight for its ability to reinstate its unlawful funding freeze is both wrong on the law and harmful for New Jersey and New York, our residents, and the workers on this critical project. The Administration’s original funding freeze added millions of dollars in costs and idled nearly 1,000 workers.”

Though the project has bipartisan support, Democrats in New Jersey and New York have most fervently fought to reestablish funding, and the episode could create a challenge for New Jersey Republicans. 

Construction resumed last week, according to the Gateway Development Commission, the agency leading operations. The Regional Plan Association warned that a six-month delay in Gateway could cause up to $1 billion in additional costs. 

“That’s why my Attorney General’s office is back in court today to stop this administration from once again cutting off funds,” Gov. Mikie Sherrill said Tuesday. “It’s time for the president to end this illegal effort once and for all and let the men and women at Gateway do their jobs on the most economically important infrastructure project in the country.”