New Jersey and New York Sue Trump Administration Over $15 Billion Gateway Tunnel Funding Freeze
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By Adam Rizvi | Editor, The India Observer (TIO): New Jersey and New York have filed a federal lawsuit against the Trump Administration, accusing it of illegally withholding $15 billion in federally committed funding for the Gateway Tunnel Project — a critical infrastructure initiative aimed at modernizing rail tunnels beneath the Hudson River and safeguarding the economic future of the Northeast Corridor.
At a press conference held Wednesday at Newark #PennStation, Acting New Jersey Attorney General Jennifer Davenport announced the legal action, warning that the funding freeze threatens thousands of jobs, daily commuters, and one of the nation’s most vital transportation arteries.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, seeks emergency relief to stop the U.S. Department of Transportation (DOT) from continuing what the states describe as an indefinite and unlawful suspension of funds already obligated under federal law.
ICYMI: Gateway Development Commission Files Breach Of Contract Claim Against Federal Government
Governor Mikie Sherrill condemned the move, framing it as a direct attack on working families and regional stability.
“Every time the Trump Administration gets involved, costs go up and working people suffer,” Governor Sherrill said. “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.”
Acting Attorney General Davenport emphasized that the states had no choice but to seek judicial intervention.
“The President’s decision to freeze funding for the Hudson Tunnel Project jeopardizes safe and reliable infrastructure and puts thousands of jobs at risk,” Davenport said. “We must challenge this illegal action in court and demand emergency relief.”
The existing rail tunnel linking New Jersey and New York was built in 1910 and sustained severe damage during Superstorm Sandy in 2012. Today, approximately 200,000 commuters rely on it daily through NJ Transit and Amtrak.
Transportation officials warn that without a new tunnel, rail capacity could be slashed by up to 75 percent during peak hours, inflicting economic losses estimated at $100 million per day across the Northeast.
The Gateway Project, launched in 2019, has already seen $15 billion in federal funding obligated, alongside more than $500 million invested by New Jersey and New York. New Jersey alone has acquired over 100 parcels of land to support construction.
Yet on September 30, 2025, just ahead of a potential federal shutdown, DOT abruptly announced an indefinite suspension of payments, citing a newly introduced compliance review — without prior notice or detailed justification.
Subsequent public statements by President Trump suggested the freeze was politically motivated, with remarks indicating an intent to terminate projects associated with Democratic leaders.
Last week, the Gateway Development Commission (GDC) notified contractors that all active construction must cease by February 6, prompting the agency to file its own breach-of-contract lawsuit against DOT.
New Jersey and New York filed their separate lawsuit citing independent harms, including:
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Loss of thousands of construction and support jobs
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Financial losses tied to state investments and land acquisition
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Escalating costs to secure idle construction sites
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Potential public safety and public health risks
The states are now seeking a preliminary injunction to block the funding freeze and restore federal payments before workers are forced off the job.
Editorial Note
Editor-in-Chief Adam Rizvi, a respected journalist and active community leader, has long covered New Jersey’s civic and infrastructure challenges. Through The India Observer, he continues to highlight stories of accountability, fairness, and public interest that shape the region’s future.
“Infrastructure should never be used as a political weapon. When funding decisions endanger workers, commuters, and public safety, the rule of law must prevail,” Rizvi noted.
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Curated by Humra Kidwai
