A federal judge dismissed the Gateway Development Commission's lawsuit against the Trump administration after the Department of Transportation paid over $200 million in owed funding. Judge Richard A. Hertling ruled the case moot since the federal government had fulfilled its financial obligations to the $16 billion tunnel project under the Hudson River.

The funding freeze, which began in October, forced the layoff of about 1,000 workers and halted construction for more than a week. The Gateway tunnel would double passenger capacity in the nation's busiest rail corridor, supplementing a 116-year-old Amtrak tunnel damaged by Hurricane Sandy in 2012. The project has received more than $11 billion in federal pledges.

The Gateway commission argued it needed court protection against potential future funding freezes and compensation for costs incurred during the shutdown. However, the judge found the Transportation Department had met its contractual obligations by paying approximately $205 million in reimbursements last month, resolving the breach claims.