Shutdown of Gateway Tunnel Project set for today after President Trump halts federal funding

CBS News New York

New Jersey officials and union workers are calling for the Trump Administration to resume federal funding of the critical Gateway Tunnel Project. Construction is set to stop at 5 p.m. Friday. 

New Jersey Gov. Mikie Sherrill and other officials held a news conference at 11 a.m. in Weehawken. Union members affected by the construction shutdown were also in attendance.

Work on the aging tunnel in New York and New Jersey will be suspended after the money for the $16 billion infrastructure project ran out. Officials said 1,000 workers are facing layoffs.

"Every single time President Trump gets involved, our working men and women suffer," Sherrill said. 

President Trump abruptly froze federal funding for the project back in October. His administration is now facing a lawsuit to free up the funding already approved by Congress.

A hearing about the lawsuit is set for 1 p.m. at a New York City courthouse. 

"So, we go to court and try to stop the White House from blowing up the project," said Rep. Josh Gottheimer. 

Mr. Trump says he will free up money under certain demands

The president said he will restore funding if Penn Station and Washington's Dulles Airport are named after him, according to sources familiar with the funding discussions. 

"He's gotta stop this nonsense. This is an economic issue, this is a working issue," said Rep. Frank Pallone. "If it doesn't get built and soon continue, then we're talking about an economic crisis for people that have to go back and forth from work.

He joked that he would name a superfund site or landfill after the president instead. 

Sen. Kirsten Gillibrand responded in a statement:

"No. This is ridiculous. These naming rights aren't tradable as part of any negotiations, and neither is the dignity of New Yorkers. At a time when New Yorkers are already being crushed by high costs under the Trump tariffs, the president continues to put his own narcissism over the good-paying union jobs this project provides and the extraordinary economic impact the Gateway tunnel will bring. 

"I demand that the president put people first and unfreeze this project and all the others his administration has been holding hostage for his personal gain."

"There is nothing to trade. The president stopped the funding, and he can restart the funding with a snap of his fingers," said a source close to Schumer.

"Cut the political crap, do the right thing, keep these tunnels on track, and let's figure this out," said Gottheimer. 

CBS News New York reached out to the White House for comment Thursday but has not heard back.

White House says Democrats are to blame 

Last week, a White House spokesperson blamed Schumer and Democrats for "standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration."

"For the good of New York, New Jersey, our economy, and union workers, the only thing to do is for President Trump to release the legally approved funds now," Schumer said Thursday.  

Stopping construction costs more money, jobs 

The project is supposed to expand the commuter rail tunnels between New York and New Jersey. It is also set to upgrade the 100-year-old Amtrak tunnels for trains traveling between Boston and Washington, D.C. 

Construction workers at the Hudson Tunnel worksite in the city's Chelsea neighborhood said on Thursday that they had no idea if or when they would return.

"We are the pawns between both parties. They're arguing, and at the end of the day, who gets hurt? The workers," shop steward Guido Rivieccio said. 

Officials also said dismantling, securing and shutting down construction could cost an additional hundreds of thousands of dollars. 

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