March 13, 2026 NEW YORK, NY After 30 years in this business, you learn to read between the lines of a court transcript. On Thursday, the high-stakes poker game over the Gateway Tunnel—the most critical infrastructure project in America—saw its first major "win" for the Trump administration. But if you think this is a simple victory, you haven’t been paying attention to the cracks in the foundation.

The "Moot" Point That Shook the Board

U.S. Court of Federal Claims Judge Richard Hertling officially handed the Department of Transportation (USDOT) a victory by declaring a key lawsuit moot.

The Gateway Development Corporation (GDC) was suing to claw back $205 million in frozen funds. The twist? They already have the money. Thanks to a separate, temporary order from a Manhattan judge in February, the feds were forced to cough up the cash to get 1,000 laid-off laborers back to work.

Hertling’s logic was straight from a seasoned veteran’s playbook: Why order the government to pay money they’ve already sent?

"I Don't Get It": The Judge Grills the Feds

While the ruling technically favored the administration, the atmosphere in the courtroom was anything but friendly for the feds. Hertling didn't hold back, grilling Justice Department attorney Geoffrey Long on why a "routine review" of minority-hiring practices has paralyzed a $16 billion project for over five months.

“Explain to me how it is conceivable that DOT has been unable to make a determination... in five and a half months?” Hertling demanded. “I don’t get it.”

When the government's lawyer admitted he had "no information" on the status of the review, the silence in the room spoke volumes. For those of us who have watched these political theater pieces for decades, it smelled less like "due diligence" and more like "deadlock."

The "Repo Man" Risk

The GDC isn't celebrating. Their attorney, Colleen Sinzdak, raised a chilling prospect: If the states lose their parallel case in Manhattan this April, the Trump administration has already signaled they might try to seize the money back.

The GDC argued that they need a formal judgment now to prevent the feds from treating the $205 million like a temporary loan they can snatch away the moment a different judge looks the other way.

What’s Next for the Gateway?

The war is far from over. While the funding freeze was lifted temporarily, the "Good Faith" battle remains.

• March 24: Both sides return to Hertling’s court to discuss damages caused by the February work stoppage.

• April 16: The "Big Showdown" in the Southern District of New York, where Judge Jeanette Vargas will decide if the federal government can permanently pull the plug.

For now, the trains are running and the tunnels are being dug—but in the courtrooms of New York and D.C., the ground is still shifting.