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Judge Orders Gateway Funds Restored as Schumer Denies Trump Renaming Claim

A Manhattan federal judge temporarily directed the administration to release the appropriated money while lawsuits over the funding freeze move forward.

Overview

  • U.S. District Judge Jeannette A. Vargas issued a temporary restraining order requiring restoration of more than $16 billion for the Hudson River tunnel project as New York and New Jersey pursue a preliminary injunction.
  • The administration halted reimbursements in October 2025, with officials citing a contracting review and concerns related to DEI practices despite Congress having approved the funding.
  • Multiple outlets reported that President Trump pressed for Penn Station and Washington Dulles International Airport to be renamed after him in exchange for releasing the funds, a proposal Schumer rejected.
  • After Trump told reporters Schumer suggested the renaming idea, the senator publicly called that assertion an “absolute lie” and said the president alone can restart the funding.
  • Project officials said work had paused as credit lines were exhausted, costing roughly 1,000 jobs, and they plan to quickly restart site operations once federal payments resume.