New York State Department of Financial Services

02/03/2026 | Press release | Distributed by Public on 02/03/2026 20:01

New York, New Jersey Sue Trump Administration for Illegally Withholding Gateway Tunnel Funding

February 3, 2026
Albany, NY

New York, New Jersey Sue Trump Administration for Illegally Withholding Gateway Tunnel Funding

New York, New Jersey Sue Trump Administration for Illegally Withholding Gateway Tunnel Funding

Without Quick Court Action, Jobs Will be Lost and New York and New Jersey will Suffer

View Complaint here

New York and New Jersey announced this evening that both states are suing the Trump Administration for illegally withholding $15 billion in federally committed funding for the Gateway project to provide new tunnels and rehabilitate the existing vital Hudson River rail crossing between northern New Jersey and New York City, jeopardizing the economic future of the Northeast region.

The lawsuit, filed in federal court in the Southern District of New York, seeks emergency relief to stop the U.S. Department of Transportation (DOT) from continuing to implement its indefinite funding freeze-funds needed to ensure that active construction on the project can continue, that workers do not lose their jobs, and that the States and their residents are not harmed.

"Donald Trump's revenge tour on New York threatens to derail one of the most vital infrastructure projects this nation has built in generations, putting thousands of union jobs and billions of dollars in economic benefits in jeopardy and threatening the commutes of 200,000 riders," Governor 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."

New Jersey Governor Mikie Sherril said, "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. 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 their lives easier."

New York Attorney General Letitia James said, "Allowing this project to stop would put one of the country's most heavily used transit corridors at risk. 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."

New Jersey Acting Attorney General Jennifer Davenport said, "Our promise to our residents is clear: we will protect them from attacks on their rights and on their pocketbooks, whatever the source. The President's decision to freeze funding for the Hudson Tunnel Project jeopardizes safe and reliable infrastructure and puts thousands of jobs at risk. The Federal Government has left us no choice: we must challenge this illegal action in court, and demand emergency relief that will protect us from these unlawful harms."

The States are bringing this lawsuit, separate from the lawsuit the Gateway Development Commission filed this week, because they are suffering their own independent harms. Ending federal funding would do more than just kill thousands of jobs and imperil the future commutes of hard-working New Yorkers and New Jerseyans. It would also mean New Jersey and New York lose the benefits of the millions in funding and land they provided to the Gateway Project. It would mean New Jersey and New York would need to incur significant new operating costs. And because the Gateway Project is well underway with a number of active construction sites, it also means New Jersey and New York would have to incur millions to secure those sites and to prevent serious public safety and public health hazards. Given the immediate chaos, loss of jobs, and serious harms to New York and New Jersey that are otherwise coming, the States are seeking emergency relief-including a preliminary injunction-to block DOT from continuing to implement this indefinite funding freeze.

Contact the Governor's Press Office

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New York State Department of Financial Services published this content on February 03, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 04, 2026 at 02:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]