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new york and new jersey It sued the Trump administration on Tuesday, saying it cut off $16 billion in federal funding for a new rail tunnel project under the Hudson River that would connect two states.
The federal government has been accused of “illegally withholding” funds for the Gateway project, and two states are seeking emergency relief to force the release of funds frozen by the U.S. Department of Transportation (DOT).
With construction already underway, states are seeking a quick ruling as the project could be forced to shut down as early as Friday, potentially eliminating thousands of jobs and leaving states with significant new operating costs.
The lawsuit was filed in the Southern District of New York Trump administration freezes billions of dollars dollars tied to the project during last fall’s government shutdown, as well as funding for New York City’s Second Avenue subway expansion.
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On October 17, 2025, construction continued on New York City’s Gateway Tunnel project connecting New Jersey and Penn Station. (Spencer Pratt/Getty Images)
Gov. Trump’s revenge trip to New York could derail one of the most important infrastructure projects this country has built in generations, putting thousands of union jobs and billions of dollars in economic benefits at risk and threatening the commute of 200,000 riders. Kathy Hochul said in a statement.
She said New York “will crack down on this illegal behavior” Trump administration steals The federal government is committed to building the Gateway Tunnel with all the money we have. “
“My message to Donald Trump and Sean Duffy is simple: I’ll see you in court.”
Fox News Digital has reached out to the White House and Department of Transportation for comment.
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The Trump administration is facing lawsuits from New York and New Jersey over freezing federal funding for the Hudson River Tunnel, drawing sharp criticism from Gov. Kathy Hochul. (Left: Anna Moneymaker/Getty Images; Right: Victor J. Blue/Bloomberg via Getty Images)
The massive project will build new tunnels and restore the existing Hudson River railroad crossing Connecting northern New Jersey to New York City.
The overhaul was deemed necessary because the existing rail tunnel is more than 115 years old and suffered severe damage from saltwater flooding during Hurricane Sandy in 2012. The tunnels carry about 70,000 New Jersey commuters every day, and Amtrak has warned that a failure in one tunnel could reduce rail traffic into New York City by up to 75%.
The project has been under construction for more than a year, but the Trump administration suspended federal funding in September, citing the government shutdown — a move the two countries said “jeopardized the economic future of the Northeast.”
“Every time the Trump administration steps in, costs go up and working people suffer. The unlawful attack on the Gateway Tunnel is another example,” the New Jersey governor said. Mikey Sherrill said in a statement. “New Jersey will not back down from this fight. If this project is stopped, 1,000 workers will immediately lose their jobs and hundreds of thousands of commuters will lose the opportunity to finally get reliable train service that makes their lives easier.”
New York Attorney General Letitia James added in a statement posted on
Jennifer Davenport, Acting Attorney General of the State of New Jerseydelivered a blunt message to the Trump administration.
Workers at the construction site of the Gateway Project’s Hudson Tunnel project on October 3, 2025 in New York City. (Anna Chanmemaker/Getty Images)
“Our commitment to our residents is clear: We will protect their rights and wallets from attacks, regardless of the source,” she said.
“The president’s decision to freeze funding for the Hudson Tunnel project jeopardizes Safe and reliable infrastructure She added: “The federal government leaves us with no choice: We must challenge this unlawful conduct in court and demand emergency relief to protect us from these unlawful harms.”
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The Gateway Development Commission, which oversees the project, filed a separate lawsuit Monday against the federal government over tunnel funding.
Fox News Digital’s Michael Dorgan and The Associated Press contributed to this report.
