Lawsuit filed against Trump administration to restore Gateway Tunnel Project funding
The Gateway Development Commission is suing the federal government for withholding funding for the critical tunnel project linking New York and New Jersey.
Officials previously said the money for the Gateway Tunnel Project, which is designed to replace and expand the aging rail tunnels damaged by Hurricane Sandy, will run out on Friday.
If the federal government doesn't resume funding, the construction will stop. Officials said this will result in thousands of layoffs and billions in economic activity lost. There's also the risk of delays on one of the most heavily traveled rail lines in the country.
The lawsuit filed Tuesday states the Trump administration is contractually obligated to pay for the project because of a binding agreement signed in July 2024.
In October, the president said he was going to terminate funding for Gateway and another project because they needed to undergo a review that would be delayed by the government shutdown.
The Gateway Development Commission is looking for a judgment to release the $205 million it says it's immediately owed. Officials are also asking for additional damages if construction is halted or contracts are canceled.
N.Y., N.J. leaders say the funding freeze is illegal
New York Gov. Kathy Hochul said the tunnel is essential to New York and the Tri-State area.
"Every day, 200,000 commuters who power 20% of the nation's economy depend on a safe, reliable ride under the Hudson River," she said. "For months, Donald Trump and his enablers in Washington have illegally withheld committed funding for this project in a brazen act of political retribution intended to hurt New Yorkers."
New Jersey Gov. Mikie Sherrill echoed the sentiment.
"I made a commitment to fight for Gateway and New Jersey's economy, which is why we're taking action to hold the Trump Administration accountable for breaching its contract. When it comes to fighting for jobs and opportunity in New Jersey, I'm all in," she said.
Senate Minority Leader Chuck Schumer said tens of thousands of union workers depend on the project moving forward.
"As this lawsuit makes clear, President Trump has illegally frozen congressionally appropriated and contractually obligated funding for Gateway," he said. "This lawsuit would be unnecessary if President Trump did the right thing for New York and New Jersey and lifted his arbitrary freeze."
Trump administration blames Democrats
The White House issued a statement on Jan. 27 blaming Democrats for the funds being withheld.
"It's Chuck Schumer and Democrats who are standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration. There is nothing stopping Democrats from prioritizing the interests of Americans over illegal aliens and getting this project back on track," said spokesperson Kush Desai.
"I mean, the project in Manhattan, the project in New York. It's billions and billions of dollars that [Sen. Chuck] Schumer has worked 20 years to get. It's terminated. Tell him it's terminated," Mr. Trump previously said.
