Gateway Tunnel: Appeals court declines to overrule order that Trump regime must release more than $200M in funding

By Isabella Gallo & Ethan Stark-Miller Posted on February 12, 2026

The Trump administration must release over $200 million in funds for the Gateway Tunnel rail project after a federal appeals court declined on Thursday to overrule a lower court’s Feb. 6 decision compelling it to let the money flow for two weeks.

The Second Circuit Court of Appeals referred the federal government’s appeal of U.S. District Court Judge Jeannette Vargas’s decision that it must temporarily release funds it has withheld from the project since October to a motions panel on Feb. 12.

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