President Donald Trump’s efforts to rename New York’s Penn Station after himself faced a major setback after a federal judge blocked his plan to withhold funding for a crucial rail project linking New York and New Jersey.
Critics said that the President decided to freeze funds in a bid to rename major transit hubs after himself. On Friday, U.S. District Judge Jeannette A. Vargas ordered the Trump administration to restore federal funds for the Hudson Tunnel Project.
This was done just hours before the construction was set to shut down. The ruling has temporarily blocked the administration from freezing billions of dollars.
The decision was made after critics claimed that Trump was using the funds as leverage in a political dispute with Senate Minority Leader Chuck Schumer.
During a media briefing onboard Air Force One, Trump shared that he would only release the money if Schumer supported renaming New York’s Penn Station and Dulles International Airport in Virginia, named in Trump’s honour.
“Chuck Schumer suggested that to me, about changing the name of Penn Station to Trump Station. Dulles Airport is really separate,” Trump said.
However, Schumer rejected his request and later posted on social media, writing, “Absolute lie. He knows it. Everyone knows it. Only one man can restart the project and he can restart it with the snap of his fingers.”
As per The Mirror, the court is now following the administration’s previous decision to spend an approximate amount of $16 billion in federal support for the tunnel.
They are supporting their decision on the recent government shutdown concerns raised by a senior budget official tied to diversity and equity. The freeze has sparked lawsuits from both the states and the Gateway Development Commission, which supervises the project.
In her ruling, Judge Vargas said the states would suffer serious damages if the funding remains blocked. “The Court is also persuaded that Plaintiffs would suffer irreparable harm in the absence of an injunction,” she wrote.
Additionally, she mentioned that the delay would cause hurdles to the public, calling the tunnel a “critical infrastructure.”
Trump just pulled $16B of federal funding for a rail tunnel across the Hudson River in NY State because he wants Penn Station to be named after him. Abt 1000 people working on the project will lose their jobs, plus the indirect job loss#TrumpIsUnfit
Congress must #ImpeachTrump https://t.co/0sS2wkkf01
— Freya Keddie 🍊 (@keddieff) February 6, 2026
Responses from the White House and the U.S. Department of Transportation are yet to be made. On the other hand, New York attorney general Letitia James supported the decision, calling it “a critical victory for workers and commuters in New York and New Jersey.”
“I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on,” James said. She added, “The Hudson Tunnel Project is one of the most important infrastructure projects in the nation.”
More here 👉️ https://t.co/yJ3bI0mQFD | Local, state, and federal lawmakers representing New Jersey spoke out on Friday against President Donald Trump’s funding freeze for the Gateway Tunnel. Trump recently suggested he would unfreeze $16 billion in funding if Sen. Chuck Schumer… pic.twitter.com/329l50XkCg
— Eyewitness News (@ABC7NY) February 6, 2026
The Gateway Development Commission has warned that the work would cease by Friday evening if funding is not restored. This will put 1,000 jobs at risk, threatening households for months ahead.
The tunnel project is designed to replace the existing 110-year-old rail tunnel under the Hudson River, which is used daily by Amtrak and regional commuter trains.
