New York and New Jersey sue Trump administration over $16B funding freeze for Hudson River tunnels
Feb 3, 2026, 5:25 PM
FILE - A tunnel is under construction in Manhattan that will connect New York and New Jersey Oct. 2, 2025, in New York. (AP Photo/Ted Shaffrey, File)
Credit: ASSOCIATED PRESS
(AP Photo/Ted Shaffrey, File)
NEW YORK (AP) — New York and New Jersey sued the Trump administration on Tuesday for freezing $16 billion in federal funding for a new rail tunnel under the Hudson River between the two states, seeking a quick ruling because construction that has been underway could be forced to shut down as early as Friday.
The administration put a hold on the funding in September, citing the government shutdown. The White House budget director, Russ Vought, said on the social platform X at the time that officials believed the spending was based on unconstitutional diversity, equity and inclusion principles, and the U.S. Department of Transportation said it was reviewing any “unconstitutional practices.”
The lawsuit, filed in federal court in Manhattan by New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport, asks a judge to declare the funding suspension unlawful and order payments to resume immediately so construction can continue without interruption.
“Allowing this project to stop would put one of the country’s most heavily used transit corridors at risk,” James said in a statement Tuesday evening. ”Our tunnels are already under strain, and losing this project could be disastrous for commuters, workers, and our regional economy.”
The White House and U.S. Transportation Department did not immediately return emails seeking comment Tuesday night.
A similar lawsuit over the tunnel funding was filed Monday against the federal government by the Gateway Development Commission, a local panel overseeing the project.
The construction project calls for building a new rail tunnel under the river to carry Amtrak and area transit trains between New Jersey and New York City, as well as repairing an existing, 116-year-old rail tunnel that was damaged by Superstorm Sandy in 2012.
Work began in 2023. The project is funded by the 2021 federal infrastructure law signed by Democratic President Joe Biden.
