New York and New Jersey have filed an emergency lawsuit against the Trump administration, asking a federal court to compel the immediate release of funds for the $16 billion Hudson River tunnel project. State officials warn that construction will be forced to stop by Friday unless financing is restored.
The legal action was lodged late Tuesday in the US District Court in Manhattan by New York Attorney General Letitia James and acting New Jersey Attorney General Jennifer Davenport.
Trump Administration Blocks Approved Funding
Donald Trump announced in October that his administration had terminated the tunnel project. Since then, the US Department of Transportation has declined to release federal funds approved during the Biden administration, despite the project’s central role in rail connectivity between New York and New Jersey.
The Hudson tunnel forms the backbone of commuter and intercity rail travel in the region, serving more than 200,000 passengers and over 400 trains every day.
States Allege Political Motivation
In their filing, the states argue that the funding suspension is driven by political retaliation against Democratic-led states. The lawsuit names Transportation Secretary Sean Duffy, along with senior officials at the Federal Railroad Administration and the Federal Transit Administration.
The White House rejected the accusation last week, claiming Democratic leaders were obstructing negotiations and linking the dispute to broader immigration-related policy disagreements.
Economic Impact and Job Loss Concerns
The Gateway Development Commission, which manages the project, filed a separate lawsuit earlier this week, warning that work would halt without immediate funding. Around 1,000 construction workers could be laid off, even as nearly $2 billion has already been spent.
The project has received roughly $15 billion in federal commitments and represents the largest infrastructure undertaking currently underway in the United States.
Ageing Infrastructure Poses Serious Risks
The existing Hudson River tunnel, completed in 1910, suffered extensive damage during Hurricane Sandy in 2012. Any failure of the tunnel would severely disrupt commuting in a region responsible for around 10% of US economic output.
Officials have repeatedly warned that continued delays increase the risk of major transport breakdowns across the northeastern United States.
Broader Pattern of Infrastructure Disputes
The Trump administration has also accused the Gateway project of violating federal rules related to disadvantaged business participation, a claim denied by project authorities.
At the same time, federal officials are seeking to dismantle Manhattan’s congestion pricing programme, introduced to ease traffic congestion and raise funds for mass transit, adding to tensions between Washington and Democratic-run states.
with inputs from Reuters
