Federal Judge Orders Restoration of $16 Billion for Gateway Project Amidst Renaming Allegations
A federal judge has ordered the Trump administration to restore $16 billion in funding for the critical Gateway (Hudson Tunnel) infrastructure project, which connects New York and New Jersey. This ruling comes amidst reports that President Donald Trump had proposed releasing the funding if Senate Minority Leader Chuck Schumer agreed to rename New York's Penn Station and Washington's Dulles International Airport after him. Schumer has denied the proposal from his side and rejected the offer when reportedly made by Trump, citing a lack of authority.
The Alleged Proposal and Rejection
According to multiple sources familiar with the conversations, President Trump proposed to Senate Minority Leader Chuck Schumer that he would release billions of dollars in federal funding for the Gateway (Hudson Tunnel) Project. The condition for this release was reportedly Schumer's agreement to rename New York's Penn Station and Washington's Dulles International Airport after President Trump. Sources indicate that Schumer rejected this offer, stating he lacked the authority to fulfill such a request.
On Friday, President Trump reportedly told reporters that Schumer had "suggested that to me about changing the name of Penn Station to Trump Station." Schumer subsequently responded on X, calling the assertion "an absolute lie." Neither the White House nor Schumer's office initially provided official comments regarding the initial reports of the proposal.
The Gateway Project: Funding Halt and Impact
The Gateway (Hudson Tunnel) Project is a major infrastructure initiative designed to connect New York City and New Jersey through a new passenger rail tunnel beneath the Hudson River, alongside the rehabilitation of the existing North River Tunnel. It is considered vital for the Northeast corridor, aiming to reduce strain on an existing 110-year-old tunnel that serves Amtrak and commuter trains.
The Trump administration had halted further funding for the project in October, coinciding with a federal government shutdown. This freeze impacted an estimated $16 billion in allocated funds. The administration cited the government shutdown and concerns regarding "unconstitutional spending related to diversity, equity, and inclusion principles" as reasons for the funding pause.
New York and New Jersey officials had warned that the project's cessation due to lack of funds could result in approximately 1,000 immediate construction job losses, with thousands more anticipated, and potential disruptions across the East Coast rail system.
Legal Action and Judicial Ruling
In response to the funding halt, the Gateway Development Commission, along with the states of New York and New Jersey, filed federal lawsuits against the Trump administration. They asserted that the government was contractually obligated to provide grants and loans for the project, the funding for which was finalized in July 2024.
On Monday, U.S. District Judge Jeannette A. Vargas in Manhattan approved a temporary restraining order (TRO) requested by New York and New Jersey. This order prevents the administration from withholding the $16 billion in funds for the Gateway project while the states pursue a preliminary injunction.
Judge Vargas's ruling stated that the plaintiffs would suffer irreparable harm without an injunction and that delays to such a critical infrastructure project would harm the public interest.
A representative for the New Jersey Attorney General's office emphasized the urgent need for relief during a hearing, citing the substantial harm and costs that would result from halting the project, including potential safety and public health threats from abandoning construction sites.
The Gateway Development Commission has stated that once funds are released, they will promptly work to restart site operations and re-employ workers. The temporary restraining order remains in effect as New York and New Jersey continue to pursue a preliminary injunction to ensure the sustained flow of federal funds throughout their lawsuit.
Broader Context: Presidential Naming Initiatives
President Trump has previously pursued initiatives to name various landmarks and projects after himself. These include the John F. Kennedy Center for the Performing Arts and the U.S. Institute for Peace. In December, the U.S. Navy announced plans for a "Trump Class" of battleships, and President Trump unveiled a government prescription drug website named TrumpRx.
These actions have drawn legislative and legal opposition. In early January, a group of senators introduced legislation to prohibit the naming of federal buildings after sitting presidents. Sponsors stated that President Trump's renaming actions concerning the Kennedy Center and U.S. Institute of Peace violated federal laws that established these institutions. In December, House Democratic Representative Joyce Beatty initiated a lawsuit against President Trump seeking the removal of his name from the Kennedy Center. A White House spokesperson, Liz Huston, stated at the time that the Kennedy Center's board, whose members were appointed by President Trump, voted for the renaming after President Trump "stepped up and saved the old Kennedy Center."
Separate legislative efforts by some conservative lawmakers to rename Dulles International Airport as the "Donald J. Trump International Airport" have also been introduced but have not advanced in Congress.