New York and New Jersey Sue Trump Administration Over Halted $16 Billion Hudson River Tunnel Funding
NEW YORK, N.Y. — New York and New Jersey have launched a federal lawsuit against the Trump administration after accusing the U.S. Department of Transportation of unlawfully freezing $16 billion allocated for the Gateway project, a vital rail tunnel under the Hudson River connecting the two states. The lawsuit, filed in the Southern District of New York on February 4, 2026, seeks emergency relief to compel the federal government to release the funds, warning that construction could halt as soon as Friday, jeopardizing thousands of jobs and imposing significant new costs on the states.
The Gateway project, a cornerstone of the region’s transportation infrastructure, aims to replace and expand aging tunnels that serve as a critical rail link between New Jersey and New York City. With construction already underway, the sudden funding freeze has sparked alarm among local officials and transit advocates who emphasize the project’s importance for economic vitality and commuter reliability.
According to the lawsuit, the Trump administration’s decision to withhold funds during last fall’s government shutdown was “illegal,” undermining commitments made to the project and threatening to derail progress. The freeze also affected funding for New York City’s Second Avenue Subway extension, compounding concerns about the administration’s approach to urban infrastructure investments.
New York Governor Kathy Hochul and New Jersey Governor Phil Murphy have both voiced strong opposition to the funding suspension. Their legal action underscores the urgency of the situation, as the Gateway project not only supports thousands of construction and transit-related jobs but also is essential to the long-term resilience of the region’s transportation network.
The lawsuit highlights that halting the Gateway project could lead to increased operating costs for the states and disrupt transit for millions of daily commuters. The tunnel is a critical artery for Amtrak and New Jersey Transit, and its failure would have far-reaching consequences for regional mobility and economic stability.
The dispute reflects broader tensions over federal infrastructure funding and priorities. The U.S. Department of Transportation, under the Trump administration, has faced criticism for its handling of major infrastructure projects nationwide. Observers note that the Gateway project has been a flashpoint due to its scale, cost, and strategic importance.
Federal transportation funding and infrastructure development are overseen by agencies such as the U.S. Department of Transportation, which manages federal grants and ensures compliance with legal and policy frameworks. The lawsuit contends that withholding funds violates these obligations and threatens to undermine federal-state collaboration.
As the legal battle unfolds, the states are pushing for a swift judicial ruling to prevent construction stoppage. The Gateway project’s future now hinges on the court’s interpretation of federal funding commitments and the administration’s authority to freeze allocated resources.
For more on the Gateway project and its significance, see the Amtrak Gateway Program page. Information on federal infrastructure funding and legal frameworks can be found at the Federal Highway Administration and the Government Accountability Office. The ongoing dispute highlights the critical role of federal-state partnerships in maintaining and advancing the nation’s transportation systems.
Leave a Reply