Legal Showdown: New York and New Jersey Battle Trump's Tunnel Funding Block

New York and New Jersey have filed a lawsuit against the Trump administration seeking to reinstate funding for the $16 billion Hudson River tunnel project. The legal action aims to prevent construction halt, a consequence of funding cuts, affecting over 1,000 jobs and crucial rail connections.

Late Tuesday, New York and New Jersey filed a lawsuit against the Trump administration, demanding immediate reinstatement of funding for the $16 billion Hudson River tunnel project. The project, critical for rail travel between New York and New Jersey, faces a funding stalemate initiated by President Trump in October.

The lawsuit, submitted in U.S. District Court in Manhattan by New York Attorney General Letitia James and acting New Jersey Attorney General Jennifer Davenport, follows Gateway Development Commission's court challenge. The project is at risk of halting, jeopardizing approximately 1,000 jobs. The states accuse Trump of withdrawing funding as a political punishment.

The White House and the U.S. Department of Transportation (USDOT) have remained silent on the legal move. However, the White House accused Democrats of blocking progress on the tunnel project. As one of the largest U.S. infrastructure projects, its success is crucial for the economy, potentially affected by the ongoing legal tussle.

(With inputs from agencies.)