A legal battle erupted Tuesday as New York and New Jersey jointly sued the federal government, challenging the abrupt halt of $16 billion in funding for the crucial Gateway rail tunnel project. The project, designed to alleviate congestion and modernize rail travel between the two states, now hangs in the balance.
The lawsuit alleges the federal government is “illegally withholding” funds previously committed to the Gateway project, alongside funding for the Second Avenue Subway extension in New York City. Officials fear an immediate shutdown, potentially as early as Friday, could cripple the project and devastate the regional economy.
Construction was already well underway when the funding freeze occurred during a government shutdown last fall. The states are urgently seeking a court order to compel the release of the funds, warning of dire consequences if the project grinds to a halt.
Governor Kathy Hochul condemned the move as a politically motivated “revenge tour” against New York, jeopardizing thousands of union jobs and billions in economic benefits. She vowed a vigorous defense, stating New York would “fight this illegal effort with everything we’ve got.”
The Gateway project aims to construct new tunnels and rehabilitate existing ones beneath the Hudson River, a vital artery for commuters and freight. The current tunnels, over 115 years old, sustained significant damage during Hurricane Sandy in 2012, leaving the system vulnerable.
Approximately 70,000 New Jersey commuters rely on these tunnels daily, and Amtrak warns that a single tunnel failure could slash rail traffic into New York City by as much as 75%. The potential disruption extends far beyond daily commutes, impacting the entire Northeast corridor.
New Jersey Governor Mikie Sherrill emphasized the escalating costs and hardship associated with federal intervention, stating the funding attack “jeopardizes the economic future of the Northeast region.” She warned of immediate job losses and the denial of reliable train service for hundreds of thousands of commuters.
New York Attorney General Letitia James highlighted the devastating impact on employment and the risk to a critical transit corridor. The lawsuit underscores the states’ determination to protect their residents and their economic interests.
Jennifer Davenport, New Jersey’s acting attorney general, delivered a firm message, promising to defend residents against any attacks on their rights and finances. She asserted the federal government left the states with no alternative but to pursue legal action.
This legal challenge joins a separate lawsuit filed Monday by the Gateway Development Commission, further escalating the conflict and signaling a determined effort to secure the future of this vital infrastructure project. The fate of the Gateway Tunnel, and the economic well-being of the region, now rests with the courts.
