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Lawsuit Filed Against Trump Administration to Restore Gateway Tunnel Project Funding

The Gateway Development Commission alleges a breach of contract after $4.38 billion in grants and $205 million in reimbursements were withheld, risking construction and 1,000 jobs.

  • On Tuesday, New York and New Jersey sued the Trump administration in federal court in Manhattan over a $16 billion freeze for the Hudson River rail tunnel, seeking immediate payment resumption.
  • The Trump administration froze the funds in September during the government shutdown, with White House budget director Russ Vought saying officials questioned DEI-linked spending and DOT said it was reviewing practices.
  • The project calls for building a new rail tunnel under the river and repairing a 116-year-old tunnel damaged by Superstorm Sandy, funded by the 2021 federal infrastructure law signed by President Joe Biden, with work begun in 2023.
  • About 70,000 New Jersey commuters and 1,000 jobs are at immediate risk if the project stops this Friday, with Amtrak warning of up to a 75% rail traffic cut into NYC.
  • Amid the legal fight, the Gateway Development Commission filed Monday, and Hochul warned `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`.
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A new judicial front was opened against Donald Trump and his administration, this time with a huge economic and labor impact for the northeast of the United States. New York and New Jersey filed a joint lawsuit to curb what they consider an illegal maneuver by the federal government: the indefinite withholding of funds already committed for one of the most important railway infrastructure works in the United States. The conflict puts at stake US…

·Buenos Aires, Argentina
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Coloradoan broke the news in on Monday, February 2, 2026.
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