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US releases $30 Million of New York Tunnel Funding

After New York and New Jersey filed a lawsuit to contest the decision, the Trump administration released $30 million from the $205 million in federal funding that had been frozen for the $16 billion Hudson Tunnel Project?in New York.

Two states sought an urgent hearing because they were concerned that the U.S. Department of Transportation would not commit to releasing the funds.

The U.S. Court of Appeals on Thursday refused to overturn a lower court's order that required the funding. It had been frozen since October, and the project was forced to stop construction last week.

The Gateway Development Commission reported that it had received the first $30 million and "expects to receive the entire $205 million reimbursement funds." The construction is paused until further notice. We are working with contractors to determine the most efficient way to use these funds and to get workers back to work to resume some of the construction as quickly as possible.

Last week, Judge Jeannette Vargas?ordered that the federal government release funds to the project to upgrade critical rail infrastructure in New York and New Jersey which had been frozen by Republican president Donald Trump since October 1.

Justice Department stated that they would release the remaining $205 million within the next few days. Vargas instructed the government to submit a report Tuesday about the status of funding.

U.S. Senator Cory Booker, of New Jersey, called the announcement a good one but said that he would continue to fight until the Trump administration ensures there will be no interruptions in the building of this vital infrastructure.

A freeze on funding last week halted construction, putting 1,000 workers out-of-work.

Sources claim that Trump promised to unfreeze funds last month in exchange for Democrats' support to rename Washington Dulles Airport and New York Penn Station after himself. Democrats strongly criticised the suggestion.

The Hudson Tunnel Project is a project to build a new commuter train tunnel between?Manhattan, New Jersey, and repair an old tunnel that's used daily by over?200,000 passengers and 425 trains. Vargas made her decision hours after New York City and New Jersey announced that construction would cease due to a 'lack of funds.

Hudson Tunnel needs emergency repairs frequently. It is the most heavily-used passenger rail line in the country.

Under then-Democratic President Joe Biden, the project received federal funding of about $15 billion. So far, nearly $2 billion has already been spent. (Reporting and editing by Franklin Paul, Jonathan Oatis, and David Shepardson)

(source: Reuters)