New Jersey and New York have filed a lawsuit against the Trump administration, aiming to release federal funds that have been frozen for the Gateway Tunnel project. This breach-of-contract lawsuit, initiated by the Gateway Development Commission (GDC), seeks the immediate release of $205 million previously approved by Congress but currently withheld by the federal government.
The GDC was established by both states to oversee the construction of a new tunnel and the rehabilitation of the 106-year-old North River Tunnel, which accommodates approximately 200,000 daily commuters. The escalating political tensions surrounding federal funding have put nearly $1 billion in investments and 1,000 jobs at risk.
Funding Freeze Sparks Legal Action
According to the GDC, the freeze of the funds is both illegal and politically charged. The commission contends that President Donald Trump lacks the authority to halt funding that Congress has specifically allocated for the Gateway project. The funding was terminated at the onset of the government shutdown in October, leading to a suspension of payments from federal agencies and effectively stalling progress on this significant infrastructure initiative.
The GDC’s board highlighted the urgency of the situation during a meeting on January 27, stating that all available funding sources and credit options have been exhausted. The lawsuit directly addresses the need for releasing the already approved funds to continue work on the project.
Governor Mikey Sherrill emphasized the legal basis for the lawsuit during an interview with CBS New York. She remarked, “This lawsuit simply says this money has legally been designated by Congress for this project and should be put towards this project, and that the President does not have the legal right to hold it up, as he is doing just for political reasons.”
Political Stakes and Economic Impact
The Gateway Tunnel project is widely recognized as vital to the economy, with U.S. Senator Andy Kim from New Jersey describing it as one of the most important projects in the nation. He stated, “Our national economy would struggle tremendously if we don’t follow through on this. We’re talking about 1,000 jobs right out of the gate when it comes to construction.”
Senator Kim cautioned against allowing political disputes to hinder progress on such a critical initiative, stating, “This can’t be caught up just because President Trump has a grudge with Democrats.”
In the wake of the funding freeze, members of the Democratic congressional delegation from New Jersey and New York have appealed to President Trump to lift the suspension. In a letter dated January 28, they pointed out that the funds had been halted ostensibly for a review process to ensure compliance with the Disadvantaged Business Enterprise program, which the U.S. Department of Transportation indicated had been completed on December 8.
As the lawsuit unfolds, the outcome will significantly influence the future of the Gateway Tunnel project and the broader implications for infrastructure investment in the region.
