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The basics:

• Trump administration appeals order blocking Gateway funding freeze
• Union construction workers rally in North Bergen over job losses
• Judge denies stay, allows short pause for appeals court review
• Nearly 1,000 jobs impacted as $16B project faces delays

As legal battles over the Gateway Tunnel Project unfold in federal court, union construction workers rallied Monday in North Bergen, officials pushed to keep the job moving, and the Trump administration appealed a judge’s order blocking a federal funding freeze for the $16 billion undertaking.

More than 200 union construction workers gathered Feb. 9 at the Gateway Tunnel Tonnelle Avenue construction site to protest the Trump administration’s suspension of federal funding. The move has affected nearly 1,000 jobs and brought construction to the brink of a shutdown.

New Jersey Gov. Mikie Sherrill and U.S. Senate Minority Leader Chuck Schumer, D-N.Y., joined members of the Laborers’ International Union of North America. They called for the immediate release of congressionally approved funds.

The rally came amid a series of rapid legal developments, including dual lawsuits recently filed by New Jersey and New York as well as the manager of the project, the Gateway Development Commission.

As NJBIZ reported Feb. 6, U.S. District Judge Jeannette Vargas issued a temporary restraining order blocking the U.S. Department of Transportation from enforcing its Sept. 30, 2025, decision to suspend federal disbursements for the project. Regarding the case brought by the states, the judge found New Jersey and New York likely to succeed in their claims under the Administrative Procedure Act and would suffer irreparable harm if construction must stop.

Ruling appealed

The Trump administration appealed the ruling to the U.S. Court of Appeals for the Second Circuit. It also sought a stay that would pause the district court’s order. Vargas denied the government’s request Feb. 9 for a stay pending appeal, but granted a short administrative stay through Feb. 12 to allow the administration to seek relief from the appeals court.

In her order, Vargas acknowledged the government’s argument that it might have to disburse up to $200 million without a clear mechanism to recover the funds if it ultimately prevails. However, she found that the potential harm to the states, workers, and the public interest outweighed that concern. She pointed to the risk of immediate layoffs, suspended work, and long-term economic damage from halting the project.

New Jersey and New York subsequently asked the court to reconsider and lift the administrative stay. They argued that funding has not yet resumed and that delays have already resulted in furloughs and suspended operations. State officials said the emergency relief has yet to have its intended practical effect.

The federal government argues the dispute belongs in the U.S. Court of Federal Claims under the Tucker Act. It asserts that the states effectively seek enforcement of contractual obligations, rather than relief under the APA.

Vargas rejected that argument at this stage. She found that the states are not parties to the underlying funding contracts and may pursue relief in district court.

‘Release the funds’

“Laborers get it done. Every day, the men and women at the Gateway Tunnel Project work tirelessly and faithfully to complete the most important infrastructure project in this country,” Sherrill said at the rally. “Yet President Trump continues to play games with our jobs, our economy, and the livelihoods of families who need to keep food on the table and their bills paid. We took the president to court and won — now, the funds are ordered to be released. Release the funds, President Trump — it’s time to get back to work.”

Back at the Tonnelle Ave construction site, alongside the brothers and sisters from @LIUNAEasternReg, as we fight to continue building the Gateway Tunnel.

We urge President Trump to restart funding immediately, so people can return to work. pic.twitter.com/ynOHExMwOG

— Governor Mikie Sherrill (@GovSherrillNJ) February 9, 2026

“Every day this drags on, millions of taxpayer dollars are wasted, contractors sit idle, union workers are sidelined, and the final cost of this project goes up for no reason,” said Schumer. “President Trump can end this today. Release the funds. Put workers back on the job. Restart Gateway now.”

“Each day hundreds of LIUNA members and their building trades brothers and sisters report to work on the Gateway Hudson Tunnel to provide for their families,” said LIUNA General President Brent Booker. “While workers have shown up at the crack of dawn every day, the Trump Administration has failed to show up for them. We call on President Trump to stop holding our livelihoods hostage, put working people and our economy first, and immediately release funding for the Gateway Tunnel Project.”

Awaiting word

Mike Hellstrom, LIUNA vice president and Eastern Regional manager, noted layoff notices issued Friday affecting close to 1,000 construction workers. Now they await the restoration of funding — and thus the fate of their future employment on the project.

Hellstrom said infrastructure investment, such as this project, has bipartisan support.

“The jobs of LIUNA members and other construction workers shouldn’t be used as political leverage. Work to modernize America’s transportation system and replace a 116-year-old rail tunnel shouldn’t be canceled to score political points,” said Hellstrom. “Nothing about canceling Gateway says American First Agenda, just the opposite. The Trump administration must get to work and release the Congressionally appropriated funds so our members can get to work building the Gateway Tunnel.”

I was proud to stand with @LIUNA and @GovSherillNJ to put people over politics and say three words: FUND GATEWAY NOW!

President Trump is playing games with this critical infrastructure project that will bring thousands of jobs and much needed resiliency to the northeast economy.… pic.twitter.com/IyADmKQzU9

— Chuck Schumer (@SenSchumer) February 9, 2026

Sherrill spoke about the situation during a Feb. 9 appearance on “The Source with Kaitlan Collins” on CNN. Again, she called on the federal administration to release the funds.

“The judge said it was time to get the funds back to work,” said Sherrill. “The president’s still illegally holding these funds. This is money in an account waiting to be put to work. But every time the president gets involved in a project, working men and women suffer, and we’re seeing that right here at the Gateway Tunnel Project.”

Renaming Penn Station? Dulles?

“The administration had argued they wanted to review to make sure the federal funds weren’t being used fraudulently. That was the reason we heard back in October,” said Collins. She then asked about the latest reporting that Trump wanted Penn Station and Dulles Airport named after him in exchange for releasing the funds. “What did you make of that reporting?”

“The president moves the goalpost every time he wakes up on the wrong side of the bed,” said Sherrill. “So, he was upset about some DEI stuff. He said he was going to investigate something.

“Then we heard the reporting that he wanted Dulles or Penn Station named after him. None of this matters. This isn’t a negotiation. This is an illegal act.

“He is illegally stopping these funds from being put to work, almost 1,000 jobs now. But it could be about 100,000 jobs in the future.”

Setting the record straight

During a Feb. 10 press briefing, a question asked White House Press Secretary Karoline Leavitt to explain why Trump wants to have his name on those two buildings. And why the Gateway Tunnel funds present the proper point of pressure to get that.

“To your first question about the renaming – why not,” said Leavitt. “It was something the president floated in his conversation with Chuck Schumer. As far as the funding, the president has addressed that separately himself.”

Trump previously said that Schumer floated it to him, which the senator has denied.

“Mr. President, can you set the record straight? There were reports circulating that you told Chuck Schumer that in order to restore funding for the Gateway train tunnel in New York, New Jersey, you would want Penn Station and Dulles Airport to be named after you. Is that true?” Trump was asked by a reported during a Feb. 6 gaggle on Air Force One.

“He suggested that to me,” said Trump. “Chuck Schumer suggested that to me about changing the name of Penn Station to Trump Station. Dulles Airport is really separate. Dulles Airport is really not too involved with Congress. That’s a separate kind of a deal, as you know. But it was suggested to me by numerous people, unions, Democrats, Republicans, a lot of people suggested. Nothing’s been done on that.”

Schumer wrote in a Feb. 6 social media post in response, “Absolute lie. He knows it. Everyone knows it. Only one man can restart the project and he can restart it with the snap of his fingers.”

The Trump administration did not immediately respond to a request for comment about the Gateway situation and the latest legal happenings.

Please stay with NJBIZ for the very latest on this developing story.