By: Richard L. Smith
New Jersey and New York have taken legal action against the Trump Administration, alleging that billions of dollars in federally approved funding for the Gateway Tunnel project have been unlawfully withheld, putting one of the nation’s most critical transportation corridors at risk.
In a statement released by the New Jersey Attorney General’s Office, officials said the lawsuit was filed in federal court in the Southern District of New York seeking emergency relief to stop the U.S. Department of Transportation from continuing an indefinite freeze on more than $15 billion committed to the Gateway Project.
The funding is intended to support the construction of new rail tunnels and the rehabilitation of existing infrastructure beneath the Hudson River, linking northern New Jersey and New York City.
State leaders warn that halting the project could have immediate and far-reaching consequences.
New Jersey Governor Mikie Sherrill said a shutdown would threaten the livelihoods of approximately 1,000 workers and delay long-promised improvements for hundreds of thousands of commuters who rely on the aging rail crossing each day.
New York Governor Kathy Hochul described the Gateway Tunnel as one of the most consequential infrastructure investments in generations, noting that the funding freeze places thousands of union jobs and billions in regional economic benefits in jeopardy, while threatening daily commutes for more than 200,000 riders.
Acting New Jersey Attorney General Jennifer Davenport said the funding freeze undermines public safety, economic stability, and the reliability of the region’s transportation network.
She added that the states were forced to turn to the courts to protect residents, workers, and taxpayers from what officials characterize as an unlawful federal action.
New York Attorney General Letitia James echoed those concerns, warning that the existing Hudson River tunnels are already under extreme strain.
She said allowing the project to stall could trigger consequences that extend well beyond New Jersey and New York, affecting the broader Northeast economy.
State officials emphasized that this lawsuit is separate from a recent legal filing by the Gateway Development Commission.
The states argue they face distinct harms, including the potential loss of millions already invested in land and planning, increased operational and security costs at active construction sites, and serious public safety and public health risks if work is suspended.
New Jersey and New York are seeking emergency court intervention, including a preliminary injunction, to prevent the Department of Transportation from continuing the funding freeze while the case moves forward.