US EditionN.Y., N.J. Sue Trump Administration over Gateway Tunnel Funds, Which Are Set to Run Out Friday
New York and New Jersey seek a court order to lift the funding freeze citing breach of contract and warn of job losses and $1 million daily added costs, officials said.
- Late Tuesday, the states of New York and New Jersey sued in federal court in Manhattan to force the release of $16 billion for the Gateway Tunnel Project, seeking immediate payment.
- The Federal Transit Administration approved a Sept. 30, 2025 rule and froze Gateway reimbursements on Oct. 1, 2025, barring race or gender consideration in DBE awards amid DOT and White House constitutional concerns.
- Construction officials warn work on five projects in New Jersey and New York could stop Friday, costing $1 million daily and risking 1,000 jobs as federal reimbursements and a line of credit are exhausted.
- The states argue the administration breached 2024 contracts and seek emergency relief, alleging illegal funding withholding while court papers say the U.S. Department of Transportation gave shifting, pretextual reasons and state officials vow to continue the legal fight.
- The New York and New Jersey suit follows a Gateway Development Commission complaint filed Tuesday and fulfills Gov. Mikie Sherrill’s pledge to restore Gateway funding amid national calls for action.
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A massive tunnel project that would link New York and New Jersey could run out of money by the end of the week. Developers are suing the Trump administration in an effort to get the funding flowing.Support NPR and hear every episode of Trump's Terms sponsor-free with NPR+. Sign up at plus.npr.org.
NY, NJ sue Trump admin. over $16B funding freeze for Hudson River tunnels
NEW YORK (AP) — New York and New Jersey sued the Trump administration on Tuesday for freezing $16 billion in federal funding for a new rail tunnel under the Hudson River between the two states, seeking a quick ruling because construction that has been underway could be forced to shut down as early as Friday. The administration put a hold on the funding in September, citing the government shutdown. The White House budget director, Russ Vought, sa…
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