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A US federal judge ordered the Trump administration to restore funding for a major rail tunnel project linking New York and New Jersey, ruling that halting support would cause irreparable harm to the states and undermine the public interest, media reports said Friday.

US District Judge Jeannette A. Vargas in Manhattan issued a temporary restraining order blocking the administration from withholding funds for the Hudson Tunnel Project while New York and New Jersey seek a broader injunction, according to ABC News.

“The Court is also persuaded that Plaintiffs would suffer irreparable harm in the absence of an injunction,” Vargas wrote, adding that “the public interest would be harmed by a delay in a critical infrastructure project.”

The ruling came just hours before construction was set to shut down after the federal government paused about $16 billion in funding. The administration cited concerns linked to a previous government shutdown and objections from federal budget officials over spending associated with diversity, equity and inclusion principles.

The White House and the US Department of Transportation did not immediately comment on the ruling.

New York Attorney General Letitia James welcomed the decision, calling it “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,” James said, describing the project as “one of the most important infrastructure projects in the nation.”

The Gateway Development Commission, which oversees the project, had warned that work would stop late Friday, resulting in the immediate loss of about 1,000 jobs and putting thousands more at risk in the future.

In a statement, the commission said it would move swiftly to restart operations once funds are released.

The new tunnel is intended to ease pressure on an existing rail tunnel that is more than 110 years old and carries Amtrak and commuter trains between the two states. Disruptions there can trigger delays across the US East Coast.

New York and New Jersey filed suit earlier this week, arguing that even a brief construction halt would create safety risks and long-term delays.

“There is literally a massive hole in the earth in North Bergen,” New Jersey Assistant Attorney General Shankar Duraiswamy told the court, warning that abandoning the site could pose “a substantial safety and public health threat.”

The Trump administration has rejected claims that a short pause would cause lasting damage, arguing that the states overstated the risks.

The case will continue as the court considers whether to issue a longer-term injunction.