New York and New Jersey Sue Trump Over $16 Billion Gateway Freeze
States seek a court order to restore $16 billion in federal funding for the Gateway Hudson River tunnel.
Overview
New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport filed a federal lawsuit in Manhattan seeking an immediate court order to restore $16 billion in federal funding for the Gateway Hudson River tunnel, their offices said.
Construction began in 2023 with nearly $2 billion already spent on early work and the project would double rail capacity into New York Penn Station while repairing a 116-year-old tunnel damaged in Superstorm Sandy, project officials said.
The Office of Management and Budget and the U.S. Department of Transportation froze the funds to review contracting practices tied to diversity, equity and inclusion, OMB Director Russ Vought and USDOT statements said, a rationale the states dispute as politically motivated.
The bi-state Gateway Development Commission warned work could halt by Friday and said about 1,000 union workers could lose jobs immediately if congressional funds are not released, commission officials said.
The states asked a judge to order payments to resume immediately and the Gateway Development Commission separately filed in the U.S. Court of Federal Claims seeking $205 million in overdue funds, court records show.
Analysis
Center-leaning sources frame the story as an urgent, politically caused threat to jobs and project progress by foregrounding union voices, Schumer's indictment, and lawsuit details while using evocative language ("massive holes," "could be lost"). Editorial choices—ordering and an ironic aside—amplify administration culpability; Trump/WH quotes remain source content.
Sources (3)
FAQ
The Gateway Hudson River tunnel project involves building a new rail tunnel under the Hudson River to serve New York Penn Station, rehabilitating the existing 116-year-old North River Tunnel damaged by Superstorm Sandy, and doubling rail capacity into Penn Station.
The Office of Management and Budget and U.S. Department of Transportation froze the funds to review contracting practices related to diversity, equity, and inclusion initiatives, which the states claim is politically motivated.
Construction will pause on February 6, 2026, impacting about 1,000 union workers who could lose jobs, halting major procurements, and delaying projects like the Hudson River Tunnel and NJ Surface Alignment planned for 2026.
Over $1 billion in taxpayer dollars and nearly $2 billion have been spent on construction to date. About $12 billion comes from federal grants, with the remaining $4 billion from U.S. Department of Transportation loans repayable by New York, New Jersey, and the Port Authority.
History
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