N.Y., N.J. sue Trump administration over Gateway Tunnel funds, which are set to run out Friday
New York and New Jersey are suing the Trump administration in a high-stakes showdown over the future of rail travel in the Tri-State Area.
The lawsuit is over billions in frozen federal funding for the Gateway Tunnel Project as a critical deadline looms on Friday. The future of the critical project is on the line after $16 billion in federal funding was put on hold. The money was to pay for a new tunnel, as well as fund repairs to the existing tunnel, which is more than a century old, and was damaged by Superstorm Sandy. Also at stake is thousands of jobs and billions of dollars in economic activity.
The lawsuit demands the federal funds be released immediately. New York and New Jersey officials say any further delay could ramp up costs, delay construction, and also disrupt service on Amtrak and NJ Transit -- specifically, on the Northeast Corridor.
"We literally will be ... lighting that money on fire"
"To somehow hold money coming to this region is really inappropriate. And if this Gateway, and you know the Gateway Development Corporation is fighting, and New Jersey is going to pull out every stop as well so we can continue to fight," New Jersey Gov. Mikie Sherrill told CBS News New York.
Rep. Josh Gottheimer said the decision to withhold funds has ignited "a five-alarm fire," calling it "the most consequential infrastructure project in America right now."
Gottheimer said the funds were allocated as part of a 2024 bipartisan infrastructure bill.
"Right now, the administration is breaching that agreement. A billion taxpayer dollars have already been spent, and literally if we just walk away from this project and leave a hole in the ground ... we literally will be lighting that fire, lighting that money on fire and walking away from it. We shouldn't be doing that," Gottheimer said.
"We know that we have a challenge. A structural challenge, a financial challenge. The Gateway train project addresses that challenge. And the idea that we would for some reason just stop it, after we all made an agreement, after we got the funding for it, none of that makes any sense to me," he added.
"A brazen act of political retribution"
The New York and New Jersey lawsuits come on the heels of the Gateway Development Commission filing its own lawsuit against the federal government for withholding the funds.
New York Gov. Kathy Hochul called the decision to withhold the money "a brazen act of political retribution intended to hurt New Yorkers." Senate Minority Leader Charles Schumer called on President Trump to do "the right thing for New York and New Jersey" and end the funding freeze.
"We cannot let partisan politics get in the way of years of planning, bipartisan commitment and construction progress. The stakes are too high, and the consequences to our economy, to commuters, and to businesses are too severe," Schumer said.
"Why stop it now?"
CBS News New York has reached out out to the White House and the Department of Transportation for comment and have not yet heard back. On Jan. 27, however, the White House released a statement blaming the funding freeze on Democrats.
"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," spokesperson Kush Desai said.
Commuters say they're watching closely.
"Once you've invested the money to start it, why stop it now, midway through?" NJ Transit rider Brian Hardy said.
"There's always delays, like it's been awful, especially after the snowstorm, so if there's a way for it to get better, I support that," NJ Transit rider Gaby Klaz said.