New York and New Jersey jointly initiated a lawsuit on Tuesday challenging the Trump administration's suspension of $16 billion in federal financial support designated for the new rail tunnel project beneath the Hudson River connecting the two states. The legal action urges a rapid judicial decision, highlighting that construction activities currently underway could be halted as soon as Friday if the funding freeze persists.
The funding suspension, enacted by the administration in September, was officially linked to the broader government shutdown period. At that time, White House budget director Russ Vought publicly stated via the social media platform X that the decision reflected concerns over the spending being influenced by principles related to diversity, equity, and inclusion, which officials deemed unconstitutional. Concurrently, the U.S. Department of Transportation mentioned an ongoing review to assess any practices considered unconstitutional in this context.
The lawsuit, filed in federal court located in Manhattan by New York Attorney General Letitia James alongside New Jersey Acting Attorney General Jennifer Davenport, requests the court to determine the funding freeze unlawful. It seeks an immediate injunction to recommence payments, ensuring construction activities continue without interruption during the legal proceedings.
In related remarks, Attorney General James emphasized the significance of the project, warning that a cessation could jeopardize one of the nation’s most heavily trafficked transit corridors. She pointed to existing pressures on the current tunnel infrastructure and underscored the project’s importance for the welfare of commuters, employees, and the broader regional economy.
Repeated attempts to obtain comments from the White House and the U.S. Department of Transportation on Tuesday evening did not elicit an immediate response.
Additionally, the Gateway Development Commission, a local body overseeing the tunnel project, filed a parallel lawsuit against the federal government on Monday concerning the funding suspension.
The tunnel project involves the construction of a new rail passage beneath the Hudson River to serve Amtrak and regional transit lines ferrying passengers between New Jersey and New York City. It also includes essential repairs to an existing 116-year-old tunnel that suffered damages from Superstorm Sandy in 2012. Construction work commenced in 2023, supported by funding from the 2021 federal infrastructure law enacted under President Joe Biden’s administration.