New York, Feb 07 (V7N)- A US federal court has ordered the release of $16 billion in funding that had been withheld by the Trump administration from a major tunnel project linking New York and New Jersey.

A Manhattan federal court issued the ruling on Friday (February 6), directing the government to release the seized funds just hours after authorities announced that renovation work on the tunnel would be halted due to a funding shortage. Last year, the Trump administration froze the project and withheld $205 million in federal funds.

US District Judge Jeanette Vargas ruled that continued withholding of funds would cause “irreparable harm” to the states of New York and New Jersey.

The tunnel is a critical transportation link, with more than 200,000 passengers traveling daily on at least 425 trains that pass through the aging structure. The tunnel suffered severe damage during Hurricane Sandy in 2012 and has since required frequent emergency repairs.

The project—known as the Gateway Project—aims not only to repair the over 100-year-old rail tunnel, but also to construct a new tunnel connecting Manhattan and New Jersey, significantly improving rail capacity and safety along the busy Northeast Corridor.

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