New York and New Jersey have taken legal action against the Trump administration, claiming it unlawfully cut off $16 billion in federal funding for a vital rail tunnel project linking the two states under the Hudson River.
The lawsuit accuses the federal government of “illegally withholding” funds designated for the Gateway project, with both states requesting an urgent ruling to compel the U.S. Department of Transportation to release the blocked funds. There’s a pressing need for a quick resolution since construction has already started, and the project could be at risk of halting as soon as Friday. This delay could cost thousands of jobs and lead to significant new expenses for the states.
Filed in the Southern District of New York, this lawsuit follows a decision by the Trump administration to freeze billions in funding related to the Gateway project during last year’s government shutdown, which also affected finances for an extension of the Second Avenue subway in New York City.
New York Governor Kathy Hochul stated, “Donald Trump’s revenge tour of New York threatens to derail one of the most important infrastructure projects this country has built in generations.” She warned that this jeopardizes thousands of union jobs and puts economic benefits worth billions at risk, affecting the commuting patterns of 200,000 passengers daily.
Hochul made it clear that New York City will vigorously contest what she sees as an illegal move by the Trump administration to seize the funds allocated for the Gateway Tunnel. “My message to Donald Trump and Sean Duffy is simple: See you in court,” she added.
The Trump administration’s decision to withhold federal funding for this massive project—aimed at constructing a new tunnel and refurbishing the existing Hudson River crossing—is alarming for many. The old rail tunnel is over 115 years old and has faced severe damage, notably from saltwater flooding during Hurricane Sandy in 2012. It serves around 70,000 New Jersey commuters daily, and Amtrak has warned that losing one of the tunnels could result in a staggering 75% drop in rail traffic into New York City.
Construction has been ongoing for over a year, but the federal funding was withheld last September, attributing the halt to the government shutdown. Officials from both states argue that this freeze endangers the economic future of the entire Northeast region.
New Jersey Governor Mikie Sherrill expressed frustration, stating, “Every time the Trump administration intervenes, costs go up and working people suffer. This illegal attack on the Gateway Tunnel is another example.” Sherrill also emphasized the high stakes of this project, noting that if it’s canceled, it would lead to immediate job losses for 1,000 workers and frustrate the commuting experience for countless others.
New York Attorney General Letitia James echoed these concerns, sending a strong signal that the states are ready to fight back against what they deem unlawful actions by the federal government.
A separate lawsuit aimed at securing tunnel funding has also been filed by the Gateway Development Commission, which is managing the project.
