Trump admin sued by New York, New Jersey over freeze in $16B tunnel funding

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New York and New Jersey sued the Trump administration Tuesday for reducing off $16 billion in federal funding for a brand new rail tunnel venture underneath the Hudson River connecting the 2 states.

The federal authorities is accused of "illegally withholding" funding dedicated to the Gateway venture and the 2 states are in search of emergency reduction to drive the discharge of funds frozen by the U.S. Division of Transportation (DOT).

With development already underway, the states are in search of a fast ruling as a result of the venture could possibly be compelled to close down as early as Friday, doubtlessly eliminating hundreds of jobs and saddling the states with important new working prices.

The lawsuit, filed within the Southern District of New York, comes after the Trump administration froze billions of {dollars} throughout the federal government shutdown final fall tied to the venture, in addition to funding for the extension of New York Metropolis’s Second Avenue Subway.

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Building continues on the Gateway Tunnel venture to attach New Jersey to Penn Station on Oct. 17, 2025, in New York Metropolis. (Spencer Platt/Getty Pictures)

"Donald Trump's revenge tour on New York threatens to derail some of the important infrastructure tasks this nation has inbuilt generations, placing hundreds of union jobs and billions of {dollars} in financial advantages in jeopardy and threatening the commutes of 200,000 riders," New York Gov. Kathy Hochul mentioned in a press release.

She mentioned New York "will struggle this unlawful effort by the Trump Administration to steal the funding the federal authorities dedicated to get the Gateway Tunnel constructed with all the pieces we have got."

"My message to Donald Trump and Sean Duffy is easy: we'll see you in courtroom."

Fox Information Digital has reached out to the White Home and the Division of Transportation for remark.

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The Trump administration is dealing with a lawsuit from New York and New Jersey over frozen federal funding for the Hudson River tunnel, drawing sharp criticism from Gov. Kathy Hochul. (Left: Anna Moneymaker/Getty Pictures; Proper: Victor J. Blue/Bloomberg through Getty Pictures)

The massive-scale venture would create new tunnels and rehabilitate an present Hudson River rail crossing connecting northern New Jersey and New York Metropolis.

The overhaul is taken into account essential as a result of the prevailing rail tunnels are greater than 115 years previous and suffered extreme injury from saltwater flooding throughout Hurricane Sandy in 2012. The tunnels carry about 70,000 New Jersey commuters day by day, and Amtrak has warned that failure of 1 tunnel might reduce rail site visitors into New York Metropolis by as much as 75%.

The venture has been underneath development for greater than a 12 months, however the Trump administration put a maintain on federal funding in September, citing the federal government shutdown — a transfer the 2 states argue is "jeopardizing the financial way forward for the Northeast area."

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"Each time the Trump Administration will get concerned, prices go up and dealing folks endure. The unlawful assault on the Gateway Tunnel is yet one more instance," New Jersey Gov. Mikie Sherrill mentioned in a press release. "New Jersey won't again down from this struggle. If this venture stops, 1,000 employees will instantly lose their jobs and a whole lot of hundreds of commuters will lose the prospect at lastly having dependable practice service that makes their lives simpler."

New York Legal professional Common Letitia James added in a press release posted on X that stopping the Gateway venture "would value hundreds of good-paying jobs and put one of many nation’s most closely used transit corridors in danger."

Jennifer Davenport, New Jersey's acting attorney general , delivered a blunt message to the Trump administration.

DUFFY THREATENS TO YANK NEW YORK FEDERAL FUNDS OVER ILLEGALLY ISSUED COMMERCIAL DRIVER'S LICENSES

Employees at a development website for the Gateway Program’s Hudson Tunnel Venture in New York Metropolis on Oct. 3, 2025. (Anna Moneymaker/Getty Pictures)

"Our promise to our residents is obvious: we'll shield them from assaults on their rights and on their pocketbooks, regardless of the supply," she mentioned.

"The President’s resolution to freeze funding for the Hudson Tunnel Venture jeopardizes safe and reliable infrastructure and places hundreds of jobs in danger," she added. "The Federal Authorities has left us no selection: we should problem this unlawful motion in courtroom, and demand emergency reduction that can shield us from these illegal harms."

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A separate lawsuit over tunnel funding was filed Monday in opposition to the federal authorities by the Gateway Improvement Fee, which oversees the venture.