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. The legal action, initiated by the Gateway Development Commission (GDC), requests the immediate disbursement of $205 million that Congress had previously approved but which the federal government has withheld.
The GDC, a public authority established by both states to manage the new tunnel’s construction and the renovation of the aging North River Tunnel, emphasizes the urgent need for these funds. This tunnel serves 200,000 daily commuters and is critical for regional transit.
On January 27, the GDC reported that it has exhausted all available funding sources, making the release of the frozen funds essential for the project’s continuity. The lawsuit contends that the funding freeze is not only illegal but also politically motivated, asserting that the president lacks the authority to obstruct funds designated by Congress for this vital infrastructure project.
The funding freeze began when President Donald Trump halted financial support at the onset of the October government shutdown. Following this, federal agencies suspended payments, effectively stalling progress on the Gateway Tunnel.
Governor Mikey Sherrill of New Jersey addressed the issue, stating, “This lawsuit simply says this money has legally been designated by Congress for this project and should be put towards this project.” She criticized the president for withholding the funds without providing a valid reason, emphasizing the importance of adhering to the legislative process.
U.S. Senator Andy Kim, representing New Jersey, described the Gateway Tunnel project as one of the nation’s most crucial infrastructure undertakings. He noted, “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.” He urged the president to separate the funding issue from political grievances against Democrats.
In a recent spending package passed by the House, $700 million was allocated for the Gateway project, yet this funding does not resolve the immediate need for the already approved funds. Democratic representatives from New Jersey and New York have also called on President Trump to release the funds, highlighting that the review process for compliance with the Disadvantaged Business Enterprise criteria, cited as a reason for the freeze, was completed on December 8.
This legal challenge underscores the tension between state authorities and federal governance, particularly regarding infrastructure investments critical to economic stability and growth. The outcome of this lawsuit could have significant implications for the future of the Gateway Tunnel project and the regions it serves.
