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New York and New Jersey sue Trump administration over $16B funding freeze for Hudson River tunnels

States seek court order to resume $16 billion in federally authorized funding halted over alleged unconstitutional spending practices, risking construction shutdown of critical Hudson River tunnel.

  • On Tuesday, New York and New Jersey sued the Trump administration in federal court in Manhattan to restore $16 billion in frozen funding for the Hudson River rail tunnel and demand immediate payment resumption.
  • The administration froze the payments in September, citing the government shutdown, while White House budget director Russ Vought said officials believed the spending involved unconstitutional practices, and the U.S. Department of Transportation reviewed these claims under the 2021 federal infrastructure law signed by President Joe Biden.
  • The Gateway Development Commission filed a similar suit Monday, with work beginning in 2023 to build and repair the 116-year-old tunnel damaged by Superstorm Sandy.
  • Seeking a quick ruling, the states said construction underway could halt by Friday, risking a key transit corridor and harming commuters and the regional economy, Letitia James, New York Attorney General, said.
  • The lawsuit escalates a legal confrontation as the White House and U.S. Transportation Department did not immediately return emails Tuesday night, while the Gateway Development Commission filed a separate suit Monday.
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New York and New Jersey sue Trump administration over $16B funding freeze for Hudson River tunnels

New York and New Jersey have sued the Trump administration for freezing $16 billion in federal funding for a new rail tunnel under the Hudson River.

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The Washington Post broke the news in on Tuesday, February 3, 2026.
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