The dismissal removes one legal challenge to the Hudson River rail project, whose new tunnels are scheduled to open in 2035.
MORRISTOWN, NJ – The federal government has dropped its latest appeal seeking to block funding for the Gateway Hudson Tunnel Project, a major investment in the rail connection used by NJ Transit and Amtrak passengers traveling between New Jersey and Manhattan.
Gov. Mikie Sherrill acknowledged the development in a Sept. 18 statement.
“This is a big victory for millions of New Jersey commuters and for the nearly 100,000 jobs the Gateway Tunnel Project will create. The Trump Administration has tried, over and over again, to illegally stop the funding for the nation’s most urgent infrastructure project. We took them to court and we won for New Jerseyans, five times. I won’t stop fighting until this project is built.” – Gov. Mikie Sherrill

A mandate from the U.S. Court of Appeals for the 2nd Circuit recorded an agreement among New Jersey, New York and the federal government to dismiss the appeal. The court document did not explain how the parties reached that agreement.
The appeal concerned a funding freeze challenged by the two states. The administration had defended the freeze as a review of diversity, equity and inclusion practices associated with federal spending. New Jersey and New York contested the withholding of funds in court.
The dismissal concerns project funding. It does not open additional tracks or change a commuter’s train schedule this fall. The Gateway Development Commission’s published construction timetable calls for the new tunnel to enter service in 2035, followed by completion of rehabilitation of the existing North River Tunnel in 2038.

The project will build a new two-tube crossing and repair the existing crossing, ultimately providing four modern tracks where there are now two. The commission says the work includes nine miles of new passenger track, with nearly five miles of tunnel boring.
The existing tunnel opened in 1910. Flooding during Hurricane Sandy in 2012 left chlorides that continue damaging its structure and electrical equipment, according to the commission. With one tube ordinarily carrying trains in each direction, a disruption to either can interfere with travel both ways.

Funding interruptions have already affected construction. In a Feb. 24 announcement, the commission said work was resuming after a pause that began Feb. 6 and affected nearly 1,000 jobs. It said approximately $235 million received from the federal government would finance the restart.
That February announcement described preparations in North Bergen, excavation associated with the Hudson County access shaft and work on the Manhattan side. It also warned that resuming construction did not, at that point, restore access to all the federal grants and loans supporting the project.
The commission’s current project overview lists seven of its 10 construction packages as underway or complete. The September dismissal ends the particular appeal described by the states; the construction schedule remains the relevant measure of when passengers can begin using the new crossing.