New York and New Jersey have filed a lawsuit against the Trump Administration, accusing it of unlawfully withholding $15 billion in federal funding that had been committed to the Gateway project. This project aims to construct new tunnels and rehabilitate existing rail crossings under the Hudson River, which are critical for transportation between northern New Jersey and New York City.
The legal action was filed in federal court in the Southern District of New York. The states are seeking emergency relief to stop the U.S. Department of Transportation from maintaining an indefinite freeze on these funds. State officials argue that without this funding, ongoing construction could be halted, jobs could be lost, and residents would face negative consequences.
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.”
New York Attorney General Letitia James added, “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.”
New Jersey Acting Attorney General Jennifer Davenport said, “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.”
Officials emphasized that halting federal support would have significant financial impacts beyond job losses or commuter disruptions. Both states have already contributed substantial resources—funding as well as land—to advance construction activities for the Gateway Project. They also note that if work stops now while several construction sites remain active, additional costs would arise for securing those sites and addressing potential safety or health risks.
The states’ lawsuit is separate from another legal action filed earlier by the Gateway Development Commission but argues that both states face unique harms if funding does not resume promptly.
