New Jersey and New York have filed a lawsuit against the Trump Administration, alleging that the federal government is illegally withholding $15 billion in previously committed funding for the Gateway project. The Gateway project aims to build new rail tunnels and rehabilitate existing infrastructure under the Hudson River, connecting northern New Jersey with New York City.
The suit was announced at a press conference at Newark Penn Station by Acting Attorney General Jennifer Davenport. Filed in federal court in the Southern District of New York, it seeks emergency relief to stop the U.S. Department of Transportation (DOT) from maintaining its freeze on funds needed for ongoing construction and jobs.
“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,” said Governor Mikie Sherrill. “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.”
“Our promise to our residents is clear: we will protect them from attacks on their rights and on their pocketbooks, whatever the source,” said Acting Attorney General Davenport. “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 existing tunnel used by NJ Transit and Amtrak dates back to 1910, suffers from significant deterioration, and was heavily damaged during Superstorm Sandy in 2012. With about 200,000 daily commuters relying on this connection, any further capacity reduction could result in major economic losses across multiple states.
Since launching in 2019, federal agencies have obligated approximately $15 billion for Gateway under laws aimed at ensuring core infrastructure safety and reliability. Both states have also invested more than $500 million into the project; New Jersey has acquired over 100 parcels needed for construction.
On September 30, 2025—just before a potential government shutdown—the DOT announced an indefinite suspension of payments for the Hudson Tunnel Project pending a compliance review. This move came without prior notice or explanation but was later confirmed by President Trump as retribution against state officials who opposed unrelated presidential demands.
President Trump stated: “This is not only jobs, I mean the project in Manhattan, the project in New York. It’s billions and billions of dollars that [Senate Minority Leader Chuck] Schumer has worked 20 years to get—it’s terminated.” He added: “The project is gonna be dead. It is pretty much dead right now,” as well as “the Gateway Project is ‘terminated because the Democrats are so foolish,’” continuing “there is no funding—because it’s up to me.”
Following DOT’s continued implementation of its funding freeze, last week saw notices issued by the Gateway Development Commission requiring all active construction work to halt by February 6. The Commission has also filed its own lawsuit claiming contract breaches related to these actions.
State officials argue that ending federal support would result not only in job losses but also force both states to absorb significant new costs—including those related to securing unfinished construction sites—while losing benefits from previous investments made into land acquisition and early development stages.
Given these immediate risks—including job losses set for February 6—the lawsuit seeks preliminary injunctions blocking DOT’s actions while requesting urgent judicial intervention.
The New Jersey Attorney General Matthew Platkin plays a central role in such legal actions due to his office’s mandate over law enforcement oversight across all counties within New Jersey as well as representing state interests statewide through litigation involving public safety matters (see official website). In addition to legal representation duties, his office supports crime labs, victim advocacy programs, consumer protection initiatives, regulatory enforcement activities statewide (source).
