Federal Appeals Court Upholds Hudson Tunnel Funding Order Against Trump Admin

Wednesday, March 11, 2026 at 4:38 PM

A federal appeals court has denied the Trump administration's attempt to overturn a ruling requiring continued payments for the $16 billion Hudson Tunnel project in New York. The court warned that stopping payments could halt construction and create safety risks.

A federal appeals court delivered a setback to the Trump administration on Wednesday, denying its effort to overturn a judicial order mandating continued funding for New York’s massive Hudson Tunnel project.

The three-member panel from the Second U.S. Circuit Court of Appeals determined that lifting the lower court’s temporary restraining order while an appeal proceeds would allow the Transportation Department to halt future funding payments. The judges warned this could lead to construction work stopping, creating “serious risk of injury and deterioration that the states, at considerable expense, will become responsible to safeguard against.”

The dispute centers on the $16 billion Hudson Tunnel infrastructure project, with the court’s decision ensuring payments to the overseeing authority will continue for now.

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