NY, New Jersey File Lawsuit to Release USD16B Hudson Tunnel Funding
The case, brought in federal court in Manhattan by New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport, seeks a ruling that the funding freeze is unlawful and demands the immediate release of payments to prevent interruptions to construction.
James warned that halting the project could have severe consequences for one of the nation’s busiest mass transit corridors. “Losing this project would be a disaster for our regional economy,” she said.
The Gateway Development Commission, which manages the project and includes representatives appointed by both states’ governors, said construction sites could face shutdowns by February 6 if funding remains suspended.
The $16 billion project, financed under the federal infrastructure law signed by President Joe Biden covering 2021–2025, aims to build a new rail tunnel under the Hudson River to carry commuter trains between New York and New Jersey.
The lawsuit follows a similar legal action filed the previous day by the Gateway Development Commission itself, also seeking the release of withheld federal reimbursements.
The Trump administration halted the funding in late September 2025, putting construction at risk and threatening thousands of jobs as well as the reliability of regional rail services.
In the United States, passenger rail operations rely heavily on federal funding, whereas freight rail is mostly privately managed. Intercity passenger services are largely handled by Amtrak, a government-controlled corporation established in 1970.
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