High Stakes Legal Battle Over $16 Billion Hudson River Tunnel Funding

The Gateway Development Commission has filed a lawsuit against the Trump administration for halting funding of the Hudson River tunnel project, crucial for rail travel between New York and New Jersey. The halted project could jeopardize jobs, delay construction, and affect daily commuters in the area.

The ongoing dispute over the $16 billion Hudson River tunnel project between New York and New Jersey has taken a legal turn. The Gateway Development Commission, established by both states, has filed a lawsuit demanding the restoration of funds by the Trump administration. These funds are critical to continuing construction.

The lawsuit filed in the U.S. Court of Claims accuses the U.S. Transportation Department of breaching its contractual obligations. Without the $205 million in federal funding, the commission claims work will come to a halt, resulting in job losses and financial burdens.

Democratic leaders, including New York Governor Kathy Hochul and New Jersey Governor Mikie Sherrill, support the lawsuit. The existing Hudson tunnel, vital for 200,000 daily travelers, risks failure, potentially impacting the region's significant economic output. Negotiations remain tense, with the Trump administration criticizing Democratic priorities.

(With inputs from agencies.)