New York Attorney General Letitia James, joined by New Jersey Acting Attorney General Jennifer Davenport, has filed a lawsuit against the Trump administration in response to the suspension of federal funding for the Hudson Tunnel Project. The project is part of the larger Gateway Program, which aims to improve rail travel across the Hudson River. The legal action follows the administration’s announcement on September 30 of an indefinite freeze on previously approved Congressional funds, according to the Attorney General’s office.
With deadlines approaching, construction could halt on Friday if federal funding is not reinstated. In the complaint, Attorney General James stated that stopping the project would endanger one of the nation’s busiest transit corridors and highlighted the potential impacts on commuters and the economy if work does not continue.
The Hudson Tunnel Project involves repairing the aging North River Tunnel, which is over a century old, and building a new tunnel beneath the Hudson River, both essential for maintaining reliable daily rail service. Although the federal government has committed more than $16 billion to the Gateway Program through various initiatives, the Department of Transportation’s unexpected funding freeze has put the future of the Hudson Tunnel at risk.
Stopping the project could affect more than construction schedules. It may lead to job losses for thousands of workers in New York and New Jersey and could increase costs if construction sites are paused or closed. Attorney General James characterized the funding freeze as a politically motivated decision rather than one based on compliance concerns.
A disruption in this corridor could affect more than local commuting, as it is part of the Northeast Corridor, a key component of the nation’s transportation network that supports roughly 20 percent of U.S. economic output. The current state of the North River Tunnel makes daily service dependent on infrastructure that is vulnerable to significant failure.
In the legal challenge, Attorneys General James and Davenport are asking the court to rule the funding suspension unlawful and to require the immediate resumption of payments to prevent a halt in construction. The case highlights the intersection of infrastructure, government decisions, and regional transportation systems that serve a broad population.
