WASHINGTON — A federal judge dismissed most of the Gateway Development Commission’s lawsuit against the Trump Administration on Thursday, March 12, saying it is mostly moot because the federal government delivered the funding it had withheld for the Hudson Tunnel project.
Judge Richard A. Hertling of the Court of Federal Claims agreed with the government’s argument that in paying more than $200 million in delayed disbursements, it had done all it was required to do. He did not rule on two counts that sought compensation for additional costs resulting from the delayed payments, the New York Times reports. A spokeswoman for the commission told the Times the agency was hoping some compensation would be awarded to address the costs of shutting down the project on Feb. 6. Work resumed at five sites by Feb. 25, and about a thousand workers returned after being laid off.
Hertling’s ruling determined that the U.S. Department of Transportation had breached the contract but that it no longer mattered since the money had been paid. “If I issue the order that [the GDC] wants, what is that going to do?” he said, according to amNY.com. “Tell the government to pay the money? Well, they have.”
The commission filed suit in February, arguing that the Department of Transportation had breached its financial obligations by failing to deliver its funding in a timely fashion without identifying a reason [see “Gateway Commission sues Trump administration …,” Trains.com, Feb. 3, 2026]. A restraining order in another case, filed by the states of New York and New Jersey, led to the release of the funds; a federal appeals court upheld that ruling earlier this week [see “Appeals court says administration must continue …,” March 12, 2026].
New Jersey Gov. Mikie Sherrill noted both rulings in a statement on Thursday, saying, “Just yesterday, we won for the fourth time in court, ensuring the Trump administration keeps funding the project every month, as it is legally obligated to do.
“We will continue to fight, and continue to win, if Donald Trump tries to illegally stop funding again.”
The commission had argued it needed a court ruling to prevent the government from trying to recover the money. The GDC spokeswoman said the judge “made it clear that the court would provide expedited review of similar claims if they arise in the future.”
— To report news or errors, contact trainsnewswire@firecrown.com.
Share this article
This SAGA is just going to be a recurring nightmare. Almost a chicken and egg situation. GDC did not want to issue 2 new contracts for the actual TBMs working until those funds released by US DOT. But The DOT by bad faith will not have to release until contracts start work.