New Jersey and New York are suing the Trump Administration for illegally withholding $15 billion in federally committed funding for the Gateway project.
The move follows a separate lawsuit the Gateway Development Commission filed against the federal government seeking judgment to release grant and loan funds for the Hudson Tunnel Project. The Gateway Development Commission filed its lawsuit in the U.S. Court of Federal Claims in Washington, and the states filed their lawsuit in the Southern District of New York.
In addition to the $205 million in disbursements due to GDC, the states’ complaint seeks damages that will be incurred in the event of a construction pause or termination of existing contracts.
The majority of the project’s budget is funded by federal grants. If additional funding does not become available by Friday, Feb. 6, officials said that construction of the Hudson Tunnel Project will pause, resulting in the loss of nearly 1,000 jobs.
The Hudson Tunnel Project would build new tunnels and rehabilitate an existing Hudson River rail crossing between northern New Jersey and New York City. Officials said stopping the flow of federal taxdollars also increases the risk that the 116-year-old North River Tunnel, which is already a leading cause of delays affecting hundreds of thousands of daily riders, will shut down.
The tunnel, built in 1910, severed the most heavily used passenger rail line in the country and cost billions of dollars in lost time and productivity.
The state lawsuit seeks emergency relief to stop the U.S. Department of Transportation from continuing to implement its indefinite funding freeze — funds officials argue are needed to ensure that active construction on the project can continue, that workers do not lose their jobs, and that the States and their residents are not harmed.
Ending federal funding would mean New Jersey and New York would incur significant new operating costs. State officials argue New Jersey and New York would have to incur millions to secure those sites and prevent serious public safety and public health hazards.
The states want a preliminary injunction to block DOT from continuing to implement this indefinite funding freeze.
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