Daijiworld Media Network - New York
New York, Feb 3: The commission overseeing the USD 16 billion Hudson River tunnel project, a critical rail link between New York and New Jersey, has filed a lawsuit seeking to compel the Trump administration to restore federal funding, just days before construction is set to halt.
The Gateway Development Commission (GDC), established by New York and New Jersey in 2019, moved the U.S. Court of Federal Claims late Monday, alleging that the U.S. Department of Transportation (USDOT) unlawfully withheld more than USD 205 million approved under the previous administration. The commission claimed the move breached contractual obligations and appeared aimed at penalising Democratic-led states.
U.S. President Donald Trump had said in October that he terminated the project, and since then the Transportation Department has refused to release funds. GDC warned that without immediate federal support, it would be unable to pay contractors, forcing work on the vital project to stop and leaving unfinished construction sites, threatening hundreds of jobs and pushing up costs due to delays and penalties.
The White House and USDOT did not immediately respond to the lawsuit. However, the White House earlier accused Democrats of blocking negotiations, saying they were prioritising other issues over getting the project back on track.
Democratic Senate Majority Leader Chuck Schumer said the lawsuit would not have been required had President Trump lifted what he called an arbitrary funding freeze. New York Governor Kathy Hochul and New Jersey Governor Mikie Sherrill also backed the legal action and urged the administration to reverse its decision.
The Hudson River tunnel, originally built in 1910 and badly damaged during Hurricane Sandy in 2012, is used by nearly 200,000 commuters daily and supports a metropolitan economy that generates about 10 per cent of U.S. economic output. Nearly USD 2 billion has already been spent on the project, which includes repairing the existing tunnel and constructing a new one for Amtrak and commuter rail services.
The Trump administration has previously opposed the project, including during Trump’s first term, and has also moved to block New York City’s congestion pricing scheme aimed at easing traffic and funding mass transit.