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Judge orders N.Y.-N.J. rail tunnel funds restored
Los Angeles Times
|February 08, 2026
Trump reportedly threatened to freeze money unless station, airport were renamed.
WORK was about to stop on the Hudson Tunnel Project when a judge stepped in.
A federal judge has ordered the Trump administration to restore funding to a new rail tunnel between New York and New Jersey, ruling just as construction was set to shut down and amid reports that President Trump was withholding the money unless Democratic Senate leader Chuck Schumer saw to it that Penn Station and Washington Dulles International Airport were renamed in the president’s honor.
The administration had sought to pressure Schumer (D-NY.) to help get the facilities renamed for Trump in exchange for releasing the money to fund the massive infrastructure project, according to the New York Times, citing top administration officials.
The judge’s decision Friday came months after the administration announced it was halting $16 billion in support for the project, citing the then-government shutdown and what a top federal budget official said were concerns about unconstitutional spending around diversity, equity and inclusion principles.
U.S. District Judge Jeannette A. Vargas in Manhattan approved a request by New York and New Jersey for a temporary restraining order barring the administration from withholding the funds while the states seek a preliminary injunction that would keep the money flowing while their lawsuit plays out in court.
This story is from the February 08, 2026 edition of Los Angeles Times.
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