A federal judge blocked the Trump administration on Monday from blocking federal funding for the Gateway Tunnel project, ruling that its move to do so last year was arbitrary and capricious. U.S. District Court Judge Jeannette Vargas’s decision surrounds the $16 billion Gateway Tunnel plan to build two new rail tunnels underneath the Hudson River between New Jersey and New York. The Transportation Department halted roughly $205 million in federal funding for the project in October, amid criticisms that it used “unconstitutional” diversity, equity, and inclusion practices, and faced cost overruns and delays. Vargas weighed in again on the debacle this week, writing that the suspension was a violation of the Administrative Procedure Act, and that “defendants make no attempt to justify their actions as consistent with the governing federal regulations.” She suggested that President Donald Trump’s freeze was tied to his dislike of Democrats such as Senate Minority Leader Chuck Schumer (D-NY), not concerns about DEI. Her rebuke comes after the administration was forced to unfreeze that funding in February due to an order from Vargas. The judge’s Monday ruling is a permanent extension of that order.