The states of New York and New Jersey filed a lawsuit late Tuesday against the Trump administration, seeking an emergency court order to reinstate federal funding for a major Hudson River rail tunnel project that officials say is on the verge of shutting down construction.
The suit, filed in U.S. District Court in Manhattan, argues that the Transportation Department’s decision to withhold money for the $16 billion project threatens a critical transportation link between the two states and could force work to stop as soon as Friday.
President Donald Trump said in October that he had terminated the project, and the department has since declined to release funds that were approved during the administration of former President Joe Biden. The Hudson River tunnel is considered essential to rail traffic in the Northeast corridor, which connects New Jersey and Manhattan and serves hundreds of thousands of commuters each day.
The lawsuit was brought by New York Attorney General Letitia James and acting New Jersey Attorney General Jennifer Davenport, one day after the Gateway Development Commission filed a separate legal challenge. Gateway has warned that without immediate access to federal funding it will be forced to halt construction this week, potentially leaving about 1,000 workers without jobs.
In their filing, the two states accuse the administration of suspending the money in an effort to “punish political rivals.” The suit names Transportation Secretary Sean Duffy, along with the heads of the Federal Railroad Administration and the Federal Transit Administration.
The White House and the Transportation Department did not immediately respond to requests for comment. However, the White House said last week that Democrats were blocking negotiations over the project, adding that “there is nothing stopping Democrats from prioritizing the interests of Americans over illegal aliens and getting this project back on track.”
Trump’s Republican administration has repeatedly moved against large transit and infrastructure projects in states led by Democrats, according to the lawsuit.
Officials have long warned that a failure of the existing Hudson River tunnel, which was completed in 1910 and badly damaged during Hurricane Sandy in 2012, would severely disrupt travel in the New York metropolitan region. That area generates about 10 percent of the nation’s economic output and relies on the crossing for more than 200,000 daily passengers and roughly 425 train movements.
Nearly $2 billion has already been spent on the Hudson tunnel effort. The broader initiative, which had been slated to receive roughly $15 billion in federal support, includes repairs to the aging tunnel and construction of a new one for Amtrak and state commuter rail services. It is the largest single infrastructure project currently underway in the United States.
In December, the Transportation Department accused Gateway of violating federal requirements under the Disadvantaged Business Enterprise program, which is intended to assist small businesses owned by socially and economically disadvantaged individuals. Gateway responded that it is complying with all applicable laws.
Trump, a former New York City real estate developer, declined to approve funding for the project during his first term in office. His administration is also attempting to block Manhattan’s congestion pricing program, which was introduced last year to reduce traffic and generate billions of dollars for public transportation improvements.
