New Jersey and New York have filed a lawsuit against the Trump Administration, alleging that $15 billion in federally committed funding for the Gateway project has been unlawfully withheld. The Gateway project aims to construct new tunnels and rehabilitate existing rail crossings under the Hudson River, connecting northern New Jersey and New York City. State officials say this funding freeze threatens both the region’s economy and thousands of jobs.
The lawsuit was announced at a press conference at Newark Penn Station by Acting Attorney General Jennifer Davenport. Filed in federal court in the Southern District of New York, it seeks emergency relief to halt the U.S. Department of Transportation (DOT) from maintaining its indefinite suspension of funds necessary for ongoing construction, job retention, and preventing harm to residents.
“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,” said Governor Mikie Sherrill. “If this project stops, 1,000 workers will immediately lose their jobs and hundreds of thousands of commuters will lose the chance at finally having reliable train service that makes their lives easier.”
“Our promise to our residents is clear: we will protect them from attacks on their rights and on their pocketbooks, whatever the source,” said Acting Attorney General Davenport. “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.”
Officials highlighted that the current tunnel serving NJ Transit and Amtrak was built in 1910, suffers ongoing deterioration, and sustained flooding during Superstorm Sandy in 2012. Around 200,000 daily commuters rely on this crossing but face frequent disruptions. Without upgrades or new construction through projects like Gateway—which began in 2019—capacity could be cut by up to 75% during peak hours, with estimated regional economic losses reaching $100 million per day.
Federal agencies had obligated approximately $15 billion for Gateway under laws aimed at improving core infrastructure safety and reliability. In addition to federal commitments, New Jersey and New York have invested more than $500 million into Gateway so far; New Jersey also acquired over 100 land parcels needed for tunnel construction.
However, just before a government shutdown on September 30, 2025, DOT announced an indefinite suspension of all payments related to the Hudson Tunnel Project due to a newly initiated compliance review—a move made without prior notice or clear explanation. According to state officials, President Trump later confirmed that suspending funding was intended as retaliation against New York officials over unrelated political disagreements.
President Trump stated: “really terminating tremendous numbers of Democrat projects. This is not only jobs, I mean the project in Manhattan, the project in New York. It’s billions and billions of dollars that [Senate Minority Leader Chuck] Schumer has worked 20 years to get—it’s terminated.” He further added: “The project is gonna be dead. It is pretty much dead right now,” as well as “the Gateway Project is ‘terminated because the Democrats are so foolish,’” noting “there is no funding—because it’s up to me.”
Due to DOT’s continued enforcement of its funding freeze policy, last week saw contractors notified by the Gateway Development Commission (GDC) that all active construction would cease on February 6; GDC subsequently filed its own lawsuit claiming breach of contract by DOT.
New Jersey and New York argue they are experiencing independent harm beyond halted employment—including loss of previous investments in land acquisition and operating expenses incurred due to stalled work sites—while facing additional costs required for securing unfinished areas against potential public health or safety hazards.
As immediate impacts approach—including widespread job losses—the states are seeking emergency judicial intervention such as a preliminary injunction before February 6 when hundreds may be forced off-site.
The New Jersey Attorney General Matthew Platkin holds statewide authority over law enforcement matters such as prosecuting offenses related to public safety initiatives throughout all counties across New Jersey (source). The office provides legal representation for state interests while offering consumer protection programs alongside oversight functions designed to safeguard residents’ rights (source). Its statutory mandate covers regulation enforcement throughout every municipality within state borders (source).
