Politics2/4/2026•Bloomberg

New York, New Jersey Sue Trump Administration Over Tunnel Funds

New York, New Jersey Sue Trump Administration Over Tunnel Funds

The states of New York and New Jersey have filed a lawsuit against the Trump administration over its decision to withhold funding for the $16 billion Gateway rail tunnel project under the Hudson River. The lawsuit alleges that the administration's actions are politically motivated and violate federal law. The Gateway project is a critical infrastructure initiative that aims to build a new rail tunnel between New York and New Jersey, replacing the existing century-old tunnel that is in dire need of repairs. The Trump administration has repeatedly refused to provide the necessary federal funding for the project, citing concerns over the project's cost and viability. The lawsuit argues that the administration's decision to withhold funds is an abuse of power and undermines the states' ability to address the region's transportation needs. The lawsuit seeks to compel the administration to restore the previously approved funding and to continue supporting the Gateway project.

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