The Gateway Development Commission has taken legal action against the Trump administration, filing a lawsuit in the Federal Claims Court over the freezing of funds for the Hudson River tunnel project. This $16 billion initiative, aimed at constructing new train tunnels beneath the Hudson River, is now at risk of coming to a standstill due to a lack of federal funding. The commission warns that this could result in significant job losses and leave unfinished construction sites with massive holes.
The lawsuit highlights the potential for astronomical costs in delays and penalties if the work is halted. It also emphasizes the threat to the commission's future ability to restart the project and the credibility of the federal government as a reliable contracting partner. The Trump administration's decision to freeze funding, citing a review of Gateway's policies, has sparked controversy and raised concerns about the project's future.
The administration's stance is further complicated by the fact that the funding was approved during the Biden administration and is made up of a collection of grants and loans. Gateway leaders have submitted all requested documents for the review but criticize the feds for changing the goalposts. The administration's demand for full funding of the U.S. Department of Homeland Security as a condition for restoring funding has been met with resistance.
The lawsuit has been supported by New Jersey Gov. Mikie Sherrill, who campaigned on ensuring Gateway stays fully funded. Sen. Chuck Schumer of New York has also spoken out, pointing out that halting the project would hurt trade union workers, many of whom voted for Trump. The project's potential shutdown could result in 11,000 union workers losing their jobs, and even if work stops, Gateway would still need to spend $15 million to $20 million per month to secure the existing work site and move heavy equipment to a secure location.
