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The basics:

• NJ & NY file suit Feb. 3 seeking emergency relief over $15B Gateway Tunnel funding freeze
• States say USDOT action could halt construction by Feb. 6, risking nearly 1K immediate jobs
• Extended delays could threaten up to 11K current jobs, $19.6B in projected economic activity
• Officials warn shutdown would disrupt one of the nation’s busiest transit corridors

New Jersey and New York announced a joint lawsuit Feb. 3, suing the Trump administration. They charge the federal government with “illegally withholding” $15 billion in federally committed funding for the Gateway Tunnel Project.

The filing in federal court in the Southern District of New York comes one day after the Gateway Development Commission entered a separate legal action over the freeze, as NJBIZ reported.

The latest seeks emergency relief to halt the U.S. Department of Transportation from continuing what the states describe as an indefinite and unlawful pause on funds. The states say the money is necessary to ensure that active construction continues on Gateway.

Major impacts

Without a restoration of the funding, the GDC has said work will halt by Feb. 6. The move would result in the immediate loss of nearly 1,000 jobs. Meanwhile, an extended pause would put at risk nearly 11,000 jobs on the current projects. That figure balloons to 95,000 jobs and $19.6 billion in economic activity when considering the total projected impact of construction.

The states request immediate court intervention, including a preliminary injunction, to ensure the federal government releases the promised funding.

“Every time the Trump Administration gets involved, costs go up and working people suffer,” said Gov. Mikie Sherrill. “The illegal attack on the Gateway Tunnel is yet another example. New Jersey will not back down from this fight.

“If this project stops, 1,000 workers will immediately lose their jobs and hundreds of thousands of commuters will lose the chance at finally having reliable train service that makes lives easier.”

Every time the Trump Administration gets involved, costs go up and working people suffer. The illegal attack on the Gateway Tunnel is yet another example.
– Gov. Mikie Sherrill

Last resort

Acting New Jersey Attorney General Jennifer Davenport said the federal government left the states no alternative.

“The president’s decision to freeze funding for the Hudson Tunnel Project jeopardizes safe and reliable infrastructure and puts thousands of jobs at risk,” said Davenport. “We must challenge this illegal action in court, and demand emergency relief that will protect us from these unlawful harms.”

New Jersey and New York said the lawsuit addresses independent damages to the states. Those charges include the loss of millions in funding and land contributions already committed and increased operating costs. It also highlights the millions more needed to secure active construction sites to prevent public safety and health risks.

Without emergency relief, the states argue the funding freeze will trigger immediate chaos, loss of jobs, and serious harm to New Jersey and New York.

Update: See more from Gov. Mikie Sherrill and acting New Jersey Attorney General Jennifer Davenport’s Feb. 4 press conference here.

“Allowing this project to stop would put one of the country’s most heavily used transit corridors at risk,” said New York Attorney General Leticia James. “Our tunnels are already under strain and losing this project could be disastrous for commuters, workers, and our regional economy. We are taking the administration to court to prevent a shutdown that would ripple far beyond New York and New Jersey.”

Gov. Kathy Hochul said, “New York will fight this illegal effort by the Trump administration to steal the funding the federal government committed to get the Gateway Tunnel built with everything we’ve got. My message to Donald Trump and Sean Duffy is simple: we’ll see you in court.”

The USDOT did not immediately respond to a request for comment.

The full lawsuit is available here.