The Dictatorship
Judge orders federal government to restore funding for $16B New York-New Jersey rail tunnel project
NEW YORK (AP) — A federal judge ordered the Trump administration to restore funding to a new rail tunnel between New York and New Jersey on Friday, ruling just as construction was set to shut down on the massive infrastructure project.
The decision came months after the administration announced it was halting $16 billion in support for the project, citing the then-government shutdown and what a top federal budget official said were concerns about unconstitutional spending around diversity, equity and inclusion principles.
U.S. District Judge Jeannette A. Vargas in Manhattan approved a request by New York and New Jersey for a temporary restraining order barring the administration from withholding the funds while the states seek a preliminary injunction that would keep the money flowing while their lawsuit plays out in court.
“The Court is also persuaded that Plaintiffs would suffer irreparable harm in the absence of an injunction,” the judge wrote. “Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”
The White House and U.S. Department of Transportation did not immediately respond to emails seeking comment Friday night.
New York Attorney General Letitia James called the ruling “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 in a statement. “The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”
The panel overseeing the project, the Gateway Development Commission, had said work would stop late Friday afternoon because of the federal funding freeze, resulting in the immediate loss of about 1,000 jobs as well as thousands of additional jobs in the future.
It was not immediately clear when work would resume. In a nighttime statement, the commission said: “As soon as funds are released, we will work quickly to restart site operations and get our workers back on the job.”
The new tunnel is meant to ease strain on an existing, over 110-year-old tunnel that connects New York and New Jersey for Amtrak and commuter trains, where delays can lead to backups up and down the East Coast.
New York and New Jersey sued over the funding pause this week, as did the Gateway Development Commission, moving to restore the Trump administration’s support.
The suspension was seen as way for the Trump administration to put pressure on Democratic Senate Minority Leader Chuck Schumer of New York, whom the White House was blaming for a government shutdown last year. The shutdown was resolved a few weeks later.
Speaking to the media on Air Force One, Trump was asked about reports that he would unfreeze funding for the tunnel project if Schumer would agree to a plan to rename Penn Station in New York and Dulles International Airport in Virginia after Trump.
“Chuck Schumer suggested that to me, about changing the name of Penn Station to Trump Station. Dulles Airport is really separate,” Trump responded.
Schumer responded on social media: “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.”
At a hearing in the states’ lawsuit earlier in Manhattan, Shankar Duraiswamy, of the New Jersey attorney general’s office, told the judge that the states need “urgent relief” because of the harm and costs that will occur if the project is stopped.
“There is literally a massive hole in the earth in North Bergen,” he said, referring to the New Jersey city and claiming that abandoning the sites, even temporarily, “would pose a substantial safety and public health threat.”
Duraiswamy said the problem with shutting down now is that even a short stoppage would cause longer delays because workers will be laid off and go off to other jobs and it’ll be hard to quickly remobilize if funding becomes available. And, he added, “any long-term suspension of funding could torpedo the project.”
Tara Schwartz, an assistant U.S. attorney arguing for the government, disagreed with the “parade of horribles” described by attorneys for the states.
She noted that the states had not even made clear how long the sites could be maintained by the Gateway Development Commission. So the judge asked Duraiswamy, and he said they could maintain the sites for a few weeks and possibly a few months, but that the states would continue to suffer irreparable harm because trains would continue to run late because they rely on an outdated tunnel.
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Collins reported from Hartford, Connecticut.
The Dictatorship
Trump threatens to cut off trade with Spain
WASHINGTON (AP) — President Donald Trump on Tuesday threatened to end trade with Spainciting a lack of support over the U.S. and Israeli attacks on Iran and the European nation’s resistance to increasing its NATO spending.
“We’re going to cut off all trade with Spain,” Trump told reporters during an Oval Office meeting with German Chancellor Friedrich Merz. “We don’t want anything to do with Spain.”
The U.S. president’s comments came a day after Spanish Foreign Minister José Manuel Albares said his country would not allow the U.S. to use jointly operated bases in southern Spain in any strikes not covered by the United Nations’ charter. Albares noted that the military bases in Spain were not used in the weekend attack on Iran.
Trump said despite Spain’s refusal “we could use their base if we want. We could just fly in and use it. Nobody’s going to tell us not to use it, but we don’t have to.”
It is unclear how Trump would cut off trade with Spain, given that Spain is under the umbrella of the European Union. The EU negotiates trade deals on behalf of all 27 member countries.
“If the U.S. administration wishes to review the trade agreement, it must do so respecting the autonomy of private companies, international law, and bilateral agreements between the European Union and the United States,” a spokesperson from Spanish Prime Minister Pedro Sánchez’s office said Tuesday.
The EU said it expects the Trump administration to honor a trade deal struck with the 27-nation bloc in Scotland last year after months of economic uncertainty over Trump’s tariff blitzkrieg.
“The Commission will always ensure that the interests of the European Union are fully protected,” said European Commission spokesperson Olof Gill.
It was just the latest instance of the president wielding the threat of tariffs or trade embargoes as a punishment and came on the heels of a Supreme Court decision that struck down Trump’s far-reaching global tariffs. While the court said that the International Emergency Economic Powers Act does not authorize the president to unilaterally impose sweeping tariffs, Trump now maintains that the court allows him to instead impose full-scale embargoes on other nations of his choosing.
Trump also complained anew Tuesday about Spain’s decision last year to back out of NATO’s 5% defense spending target. At the time, Spain said it could reach its military capabilities by spending 2.1% of its GDP, a move that Trump roundly criticized and responded to with tariff threats as well.
Spain, Trump said, is “the only country that in NATO would not agree to go up to 5%” in NATO spending. “I don’t think they agreed to go up to anything. They wanted to keep it at 2% and they don’t pay the 2%.”
Merz noted that Trump was correct and said, “We are trying to convince them that this is a part of our common security, that we all have to comply with this.”
Spain defended its position Tuesday, saying it is “a key member of NATO, fulfilling its commitments and making a significant contribution to the defense of European territory,” the spokesperson in Sánchez’s office said.
During the Oval Office meeting, Trump turned to U.S. Treasury Secretary Scott Bessent for his opinion on the president’s embargo authority.
Bessent said, “I agree that the Supreme Court reaffirmed your ability to implement an embargo.” Bessent added that the U.S. Trade Representative and Commerce Department would “begin investigations and we’ll move forward with those.”
A representative from the U.S. Treasury Department did not respond to a request from The Associated Press for additional comment.
Sánchez has been critical of the U.S. and Israeli attacks on Iran, calling it an “unjustifiable” and “dangerous” military intervention. His government has demanded an immediate de-escalation and dialogue and also condemned Iran’s strikes across the region.
Trump said, “Spain has absolutely nothing that we need other than great people. They have great people, but they don’t have great leadership.”
Spain’s position on the use of U.S. bases in its territory marks the latest flare-up in its relationship with the Trump administration. Under Sánchez, Europe’s last major progressive leader, Spain was also an outspoken critic of Israel’s war in Gaza.
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Naishadham reported from Madrid. AP journalist Sam McNeil in Brussels contributed.
The Dictatorship
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The Dictatorship
‘It’s fantastic’: Trump tells MS NOW he’s seen celebrations after Iran strikes
President Donald Trump called the celebrations in the streets of Iran “fantastic” following the killing of the country’s supreme leaderAyatollah Ali Khamenei, during a brief phone call with MS NOW on Saturday night.
Trump told MS NOW that he’s seen the celebrations in Iran and in parts of America, after joint U.S.-Israel airstrikes killed Khamenei.
“I think it’s fantastic,” the president said of the celebrations. “I’ve seen them in Los Angeles, also — celebrations.”
“I’ve seen them in Los Angeles, celebrations, celebrations,” Trump said, accentuating the point.
The interview took place roughly 11 hours before the Pentagon announced the first U.S.military casualties of the war. U.S. Central Command said three American service members were killed in action, and five others had been seriously wounded.

Revelry broke out in Iran, the United States and across the globe on Saturday, with Iranians cheering the death of Khamenei, who led Iran with an iron fist for more than 30 years, cracking down on dissent at home and maintaining a hostile posture with the U.S. and Israel.
Asked how he was feeling after the strike on Khamenei, whose death was confirmed just a few hours earlier, Trump said it was a positive development for the United States.
“I think it was a great thing for our country,” he said.
The call — which lasted less than a minute — came after a marathon day, which began in the wee hours of the morning with strikes on Iran and continued with retaliatory ballistic missiles from Tehran targeting Israel and countries in the Middle East region that host U.S. military bases.
The day ended with few answers from the White House to increasing questions about the long-term future of Iran, how long the U.S. will continue operations there, and the metastasizing ramifications it could have on the world stage. In fact, the president has done little to convince the public to back his Iran operation, nor to explain why the country is at war without the authorization of Congress.
On perhaps the most consequential day of his second term, Trump did not give a formal address to the public, nor did he hold a press conference. Instead, he stayed out of public view at Mar-a-Lago, his private club and residence in Palm Beach, Florida, where he attended a $1 million-per-plate fundraising dinner on Saturday evening.
But throughout the day, Trump took calls from reporters at various new outlets, including from MS NOW at around 11 p.m. ET.
The strikes, known formally as “Operation Epic Fury,” came after months of talks over Iran’s nuclear program, and warnings from Trump that he would strike Tehran if they did not agree to his often shifting conditions.
At 2:30 a.m. ET on Saturday, Trump posted a video to social media announcing the operation, which he said was designed to “defend the American people by eliminating imminent threats from the Iranian regime, a vicious group of very hard, terrible people.”
“The lives of courageous American heroes may be lost and we may have casualties. That often happens in war,” Trump said when he announced the strikes on Iran.
Mychael Schnell is a reporter for MS NOW.
Laura Barrón-López covers the White House for MS NOW.
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