U.S. Court Orders Release of $16 Billion in Infrastructure Funding After Trump Administration Freeze

A U.S. federal court has ruled that the Trump administration must release $16 billion in previously frozen federal funds that had been withheld from a major rail tunnel infrastructure project connecting New York and New Jersey.

The decision came after New York and New Jersey filed a lawsuit challenging the administration’s refusal to allow the funds to be spent on the critical project, which includes expansion and repair of the Hudson River rail tunnels used daily by hundreds of thousands of commuters.

The tunnel project, which was approved under a prior federal infrastructure program and is considered vital for regional transportation, faced a funding freeze by the Trump administration in late 2025, prompting concerns that construction would halt and jobs would be jeopardised.

In its ruling, the federal court found that continuing to block the release of the $16 billion could cause “irreparable harm” to the states and the region’s transit system, and ordered the funds to be made available so construction and repairs can continue without interruption.

The funds are intended to support both the rehabilitation of the existing century-old tunnel and the construction of a new one to improve rail capacity.

Officials from New York and New Jersey welcomed the decision, noting the importance of the project for everyday commuters and the broader economy. The Trump administration’s next steps, including any appeal, had not been announced at the time of the court order.

Sources: Reuters, Associated Press