New York and New Jersey have filed a lawsuit against the Trump Administration, alleging that the federal government is illegally withholding $15 billion in previously committed funding for the Gateway project. The initiative aims to build new tunnels and rehabilitate existing rail infrastructure beneath the Hudson River, connecting northern New Jersey with New York City.
The complaint was submitted to the federal court in the Southern District of New York. The two states are requesting emergency relief to prevent the U.S. Department of Transportation from maintaining an indefinite freeze on funds they say are essential for ongoing construction, protecting jobs, and avoiding economic harm to residents.
Governor Kathy Hochul of New York stated, “Donald Trump’s revenge tour on New York threatens to derail one of the most vital infrastructure projects this nation has built in generations, putting thousands of union jobs and billions of dollars in economic benefits in jeopardy and threatening the commutes of 200,000 riders. New York will fight this illegal effort by the Trump Administration to steal the funding the federal government committed to get the Gateway Tunnel built with everything we’ve got. My message to Donald Trump and Sean Duffy is simple: we’ll see you in court.”
New Jersey Governor Mikie Sherril commented, “Every time the Trump Administration gets involved, costs go up and working people suffer. The illegal attack on the Gateway Tunnel is yet another example. New Jersey will not back down from this fight. If this project stops, 1,000 workers will immediately lose their jobs and hundreds of thousands of commuters will lose the chance at finally having reliable train service that makes their lives easier.”
Letitia James, Attorney General for New York, said, “Allowing this project to stop would put one of the country’s most heavily used transit corridors at risk. Our tunnels are already under strain and losing this project could be disastrous for commuters, workers, and our regional economy. We are taking the administration to court to prevent a shutdown that would ripple far beyond New York and New Jersey.”
Jennifer Davenport, Acting Attorney General for New Jersey, added: “Our promise to our residents is clear: we will protect them from attacks on their rights and on their pocketbooks, whatever the source. The President’s decision to freeze funding for the Hudson Tunnel Project jeopardizes safe and reliable infrastructure and puts thousands of jobs at risk. The Federal Government has left us no choice: we must challenge this illegal action in court, and demand emergency relief that will protect us from these unlawful harms.”
State officials emphasized that their legal action is separate from a similar suit filed earlier by the Gateway Development Commission. They argue that losing federal support would force both states not only to absorb significant new operating costs but also potentially pay millions more to secure active construction sites—measures they say are necessary to avoid public safety or health risks if work halts unexpectedly.
The states seek a preliminary injunction against further implementation of what they describe as an unlawful funding freeze by DOT.