A United States federal court judge has permanently prevented the Department of Transportation (USDOT) from withholding grant payments to the $US 16bn Hudson Tunnel Project in New York.
In a ruling made on June 29, district judge Jeanette Vargas effectively made permanent a temporary restraining order issued on February 6 in a case brought jointly by the states of New York and New Jersey. A panel of judges will now review the case to determine whether the law was correctly applied.
The ruling states that the Trump administration violated federal regulations governing the suspension of already-obligated infrastructure grants. “Defendants do not dispute that the suspension of federal grants flagrantly violates federal law," according to Vargas. "The Court rejects the notion that the States are without a remedy in such a situation."
Vargas also rejected USDOT’s claim that the dispute belonged exclusively in the US Court of Federal Claims because it arose from grant agreements related to Gateway Development Commission (GDC), the delivery body of the Hudson Tunnel Project.
GDC was forced to temporarily pause work on the project on February 6, with the immediate loss of 1000 jobs and is now pursuing a separate court case against USDOT for monetary damages sustained during the enforced shutdown of the project.
“Prior to the freezing of federal funding, the Hudson Tunnel Project was on schedule and on budget, and we have made significant progress since federal funding for the project resumed in February,” says Catherine Rinaldi, executive vice-president at GDC.
USDOT has not indicated whether it will appeal to the Supreme Court if Judge Vargas’ ruling is confirmed.
An exclusive interview with GDC CEO Tom Prendergast and a detailed description of the Hudson Tunnel Project appears in the July issue of IRJ (p20).
