New York, New Jersey sue Trump administration to unfreeze $16B Gateway Hudson Tunnel funding

By Ahmet Furkan Mercan

ANKARA (AA) – New York and New Jersey filed a lawsuit against the Trump administration on Tuesday over the freezing of $16 billion in federal funding for a new rail tunnel project under the Hudson River.

New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport brought the case in federal court in Manhattan, seeking a ruling that the funding freeze is unlawful and demanding that payments resume immediately to allow uninterrupted construction.

James said the freeze threatens one of the busiest mass transit corridors in the US.

“Losing this project would be a disaster for our regional economy,” she said.

The Gateway Development Commission, which oversees the project and includes representatives appointed by the governors of New York and New Jersey, said construction sites could be shut down by Feb. 6 due to the funding suspension.

The $16 billion construction project, funded under the federal infrastructure law signed by President Joe Biden for the 2021–2025 period, involves building a new rail tunnel under the Hudson River to carry commuter trains between the two states.

The lawsuit follows a similar case filed a day earlier by the Gateway Development Commission against the federal government, seeking the release of withheld reimbursements.

The Trump administration suspended the funding in late September 2025, putting construction at risk of halting imminently and potentially affecting thousands of jobs and regional rail reliability.

In the US, passenger rail depends heavily on federal funding. Freight rail is largely privately operated, while Amtrak, a government-controlled corporation founded in 1970, handles most intercity passenger services.

Private rail operators remain limited, operating only a few regional lines such as Brightline, with no major intercity passenger rail operating without substantial public support. The Hudson River tunnel project is intended exclusively for passenger trains.

* Writing by Selcuk Uysal