New York and New Jersey late on Feb. 3 lodged a federal lawsuit aimed at compelling the U.S. government to resume disbursement of federal funds for the major Hudson River tunnel project, which carries an estimated price tag of $16 billion. The complaint, filed in U.S. District Court in Manhattan, asks for emergency relief to have the money restored before construction is scheduled to stop on Friday.
The states say the U.S. Department of Transportation has refused to release funds that were approved during the administration of President Joe Biden. They pointed to a statement by U.S. President Donald Trump in October that he had terminated the project, and contend the department's withholding of funds is preventing work from continuing.
The filing was submitted by New York Attorney General Letitia James and acting New Jersey Attorney General Jennifer Davenport. It arrives shortly after a separate legal move earlier in the week by the Gateway Development Commission, which manages the program. The commission said it would pause construction this week unless the withheld funding is made available, warning that around 1,000 workers could be put out of work if activity is suspended.
The lawsuits seek immediate court action to compel federal authorities to release funds so that construction can proceed without interruption. The states framed their request as urgent because construction stoppage is scheduled to begin at the end of the week, a shift that they argue could have immediate operational and workforce consequences.
As described in the filings, the dispute centers on the federal government's decision-making about funding approved under a prior administration and statements by the current president regarding project termination. The states' complaint asserts that withholding the funds jeopardizes an active, high-value infrastructure program and threatens employment tied directly to the work underway.
The litigation now joins a parallel challenge from the program administrator in federal court, indicating multiple fronts of legal contestation over the same funding decision. The commission and the states have laid out the same deadline for potential construction suspension, underscoring the narrow window for judicial action to avert an immediate halt.
Summary
New York and New Jersey asked a Manhattan federal court on Feb. 3 for an emergency order restoring federal funding for the $16 billion Hudson River tunnel after the Transportation Department refused to disburse sums approved under the Biden administration. The suit follows a Gateway Development Commission filing and a warning that construction will stop this week unless funding is released, putting roughly 1,000 workers at risk of losing work.