February 12, 2026 – The U.S. Court of Appeals for the Second Circuit on Thursday declined to extend a stay sought by the federal government, clearing the way for approximately $205 million in overdue reimbursement funds to be wired to the Gateway Development Commission overnight.

The money, already committed to the Hudson Tunnel Project, is considered essential to getting construction crews back on site and restoring momentum to one of the most critical infrastructure projects in the country.

The matter before the court was the lawsuit filed by the states of New Jersey and New York. A separate court action was filed by the Gateway Development Corporation and is scheduled to be heard next month.

The court’s action was hailed by Alliance for Action President Jerry Keenan.

“This development is an important step toward getting this project back on track,” Keenan said. “The Hudson Tunnel Project is too critical to the region and the national economy to be slowed by funding uncertainty or politics.

“So, yes, the New Jersey Alliance for Action is pleased with the court’s action in this matter – a clear signal that federal funding must flow and this project can continue moving forward. It’s simply too important to our state, our region, and the nation.”

While the ruling marks a significant legal and financial victory for the project, uncertainty remains. Federal officials could still seek an emergency appeal to the U.S. Supreme Court in an effort to halt the transfer.

In a statement, the Gateway Development Commission called the development “good news” and said it anticipates receiving the funds, while continuing to pursue full, reliable access to all federal dollars tied to the Hudson Tunnel Project through its ongoing lawsuit.

Keenan said the focus now should return to restarting the project as quickly as possible.

“More than 11,000 active construction workers, nearly half a million daily rail riders, and an economic impact projected to exceed $275 billion over the next three decades are all tied to this project’s success,” Keenan said. “The disruption that forced work to stop last Friday should never happen again.”

Since 1974, The New Jersey Alliance for Action has worked as a non-partisan and non-profit association representing thousands of business, labor, government, utility, education, professional, and other New Jersey leaders. Our mission is to improve New Jersey’s economy through the promotion of environmentally friendly capital construction and infrastructure investment.