Gateway Development Commission Sues Trump Administration Over Frozen Hudson River Tunnel Funding Amid Thousands of Job Losses
The $16 billion tunnel project that aims to replace the aging Hudson River rail tunnels is on the brink of collapse after the Trump administration's decision to freeze federal funding, sparking a lawsuit by the Gateway commission against the federal government.
According to the lawsuit filed in Federal Claims Court, the commission needs approximately $200 million in federal funds to continue construction work, which could force the project to halt operations as early as this Friday. This stoppage would not only result in thousands of people losing their jobs but also leave "unfinished work sites with massive holes in the ground," according to the lawsuit.
Gateway officials claim that they have submitted all required documents for a review of the commission's policies requiring a certain percentage of contracts to go to disadvantaged businesses, but the Trump administration has been inconsistent and arbitrary in its actions. In October, White House officials halted funding for the tunnel project without providing clear justification, stating that this was necessary after President Trump announced a new review process.
However, according to Gateway leaders, they have fulfilled all requested requirements, and there is no need for further review. Trump administration officials suggested that the funds would only be restored if Democrats fully fund the U.S. Department of Homeland Security, effectively holding up progress on the project.
The Gateway commission argues that the U.S. Department of Transportation has unlawfully withheld federal funding in violation of grant terms. If the project were to shut down entirely, an estimated 11,000 union workers could lose their jobs. In addition, Gateway would need to spend around $15 million to $20 million per month to secure existing work sites and relocate heavy equipment.
The current Hudson River tunnels are over 116 years old and suffered significant damage during Hurricane Sandy in 2012. Under the current plans, these aging tubes will not be repaired until the new tunnels open for service in 2035. New Jersey Governor Mikie Sherrill has expressed her support for the lawsuit, stating that she is committed to holding the Trump administration accountable.
Senator Chuck Schumer from New York has also condemned President Trump's actions, pointing out that halting the project would harm trade union workers who voted for him. He emphasizes that this funding was provided by Congress and cannot be unilaterally withheld by the administration.
The $16 billion tunnel project that aims to replace the aging Hudson River rail tunnels is on the brink of collapse after the Trump administration's decision to freeze federal funding, sparking a lawsuit by the Gateway commission against the federal government.
According to the lawsuit filed in Federal Claims Court, the commission needs approximately $200 million in federal funds to continue construction work, which could force the project to halt operations as early as this Friday. This stoppage would not only result in thousands of people losing their jobs but also leave "unfinished work sites with massive holes in the ground," according to the lawsuit.
Gateway officials claim that they have submitted all required documents for a review of the commission's policies requiring a certain percentage of contracts to go to disadvantaged businesses, but the Trump administration has been inconsistent and arbitrary in its actions. In October, White House officials halted funding for the tunnel project without providing clear justification, stating that this was necessary after President Trump announced a new review process.
However, according to Gateway leaders, they have fulfilled all requested requirements, and there is no need for further review. Trump administration officials suggested that the funds would only be restored if Democrats fully fund the U.S. Department of Homeland Security, effectively holding up progress on the project.
The Gateway commission argues that the U.S. Department of Transportation has unlawfully withheld federal funding in violation of grant terms. If the project were to shut down entirely, an estimated 11,000 union workers could lose their jobs. In addition, Gateway would need to spend around $15 million to $20 million per month to secure existing work sites and relocate heavy equipment.
The current Hudson River tunnels are over 116 years old and suffered significant damage during Hurricane Sandy in 2012. Under the current plans, these aging tubes will not be repaired until the new tunnels open for service in 2035. New Jersey Governor Mikie Sherrill has expressed her support for the lawsuit, stating that she is committed to holding the Trump administration accountable.
Senator Chuck Schumer from New York has also condemned President Trump's actions, pointing out that halting the project would harm trade union workers who voted for him. He emphasizes that this funding was provided by Congress and cannot be unilaterally withheld by the administration.