NY, NJ Sue Trump Admin Over Hudson Tunnel Funding Cut

New York and New Jersey filed a joint lawsuit against the Trump administration on February 3, 2026, seeking an emergency court order to restore federal funding for the $16 billion Hudson River rail tunnel project, just days before construction is scheduled to halt on Friday. The action in U.S. District Court in Manhattan follows a separate suit by the Gateway Development Commission, the bi-state agency overseeing the project, which warned that the funding freeze threatens 1,000 construction jobs and the future of the initiative.

The states' attorneys general, Letitia James of New York and acting Attorney General Jennifer Davenport of New Jersey, argued in their complaint that the administration's decision to withhold funds violates the Administrative Procedure Act and harms residents by endangering a vital transit corridor. The lawsuit requests immediate resumption of payments to prevent work stoppage. "Allowing this project to stop would put one of the country's most heavily used transit corridors at risk," James said in a statement. "Our tunnels are already under strain, and losing this project could be disastrous for commuters, workers, and our regional economy."