New Jersey and New York have filed a lawsuit against the Trump Administration, alleging that it is illegally withholding $15 billion in federal funding for the Gateway project. The project aims to build new rail tunnels and rehabilitate the existing Hudson River crossing between northern New Jersey and New York City. State officials argue that the loss of funding threatens the economic stability of the Northeast region.
The legal action was filed in federal court in the Southern District of New York. The states are seeking emergency relief to prevent the U.S. Department of Transportation from maintaining its indefinite freeze on funds. According to state leaders, this money is essential for ongoing construction, job security for workers, and preventing harm to residents.
Governor Mikie Sherrill stated, “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.” She added that stopping the project would result in immediate job losses for 1,000 workers and disrupt reliable train service for hundreds of thousands of commuters.
Governor Hochul commented, “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.” She continued, “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.”
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.”
Attorney General 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.”
The lawsuit brought by both states is separate from another recent suit filed by the Gateway Development Commission regarding similar issues with federal support for transportation infrastructure.
State officials emphasized that ending federal support would not only threaten jobs but also force both states to bear additional operational costs related to securing active construction sites as well as addressing public safety concerns.










