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New York and New Jersey have approached a federal court seeking an emergency order to restore funding for the Hudson River rail tunnel after the Trump administration halted federal support. The states argue that the freeze could stop construction within days and lead to job losses. The legal action follows a separate suit by the Gateway Development Commission. The project, valued at about USD 16 billion, is vital for rail travel between the two states and supports over 200,000 daily passengers. Federal authorities have cited legal and policy concerns.
New York and New Jersey have taken legal action against the Trump administration, seeking urgent judicial intervention to restore federal funding for the Hudson River rail tunnel, a project considered critical for rail connectivity between the two states. The lawsuit argues that the funding halt threatens to stop construction imminently, putting the project and its workforce at risk. Advertisement
The case was filed in a federal court in Manhattan by New York Attorney General Letitia James and acting New Jersey Attorney General Jennifer Davenport. The states are asking the court to direct the federal government to release funds that had already been approved earlier, warning that construction could be forced to pause as early as the end of the current work week if money is not released.
The legal move followed a separate court challenge filed a day earlier by the Gateway Development Commission, the agency overseeing the project. Gateway has said it would have no option but to halt construction without funding being secured, a step that could lead to around 1,000 workers being temporarily laid off.
The lawsuit alleges that the suspension of funds was driven by political considerations, stating that the decision reflected an attempt to penalise political opponents. The suit names Transportation Secretary Sean Duffy along with the heads of the Federal Railroad Administration and the Federal Transit Administration as defendants.
President Donald Trump had announced during the past year that he was terminating the Hudson tunnel project. Since then, the U.S. Department of Transportation has declined to release federal funds that were approved under the previous administration of President Joe Biden. These funds are central to the project, which forms the backbone of rail travel between New York and New Jersey.
While the White House and the transportation department did not immediately respond to the lawsuit, the White House had said in the past week that Democratic leaders were blocking progress by refusing to negotiate. It stated that there was nothing preventing them from prioritising national interests and moving the project forward.
The Trump administration has, in recent years, taken a firm stance against several large-scale transit and infrastructure projects located in states led by Democrats. The Hudson tunnel has been a recurring point of contention, with Trump also having declined to approve funding for it during his first term in office.
The existing Hudson River tunnel, built in 1910, is more than a century old and suffered extensive damage during Hurricane Sandy in 2012. Officials have warned that any failure of this tunnel would severely disrupt commuting in the region, which accounts for nearly 10 percent of the United States economic output. More than 200,000 passengers and 425 trains use the route daily.
So far, nearly USD 2 billion has already been spent on the project. The broader initiative, which has secured close to USD 15 billion in federal support, involves repairing the existing tunnel and building a new one for Amtrak and state-run commuter rail services connecting New Jersey with Manhattan. It is currently the largest infrastructure project underway in the country.
The transportation department had also accused the Gateway Development Commission late last year of violating rules under the Disadvantaged Business Enterprise programme, which is meant to support small businesses owned by socially and economically disadvantaged individuals. Gateway has maintained that it is fully compliant with federal law.
Beyond the tunnel, the administration has also moved to oppose Manhattan's congestion pricing scheme, introduced last year to cut traffic and generate funds for mass transit, adding to tensions between federal authorities and New York state leaders.
Source Reuters
5th Jun, 2025
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