The Gateway Development Commission (GDC) has filed a lawsuit in the U.S. Court of Federal Claims against the federal government, seeking to secure grant and loan funds that are contractually obligated for the Hudson Tunnel Project (HTP). The commission warned that if additional funding is not made available by Friday, February 6, construction on the tunnel will be halted, leading to the loss of 1,000 jobs.
According to GDC, approximately 70 percent of the $16 billion budget for the Hudson Tunnel Project—about $12 billion—is sourced from federal grants. The remaining $4 billion comes from loans through the USDOT Build America Bureau, which are set to be repaid by New York and New Jersey as well as the Port Authority of New York and New Jersey. All disbursements from these sources have been stopped since October 1 of last year.
Governor Mikie Sherrill appeared on multiple news programs expressing support for GDC’s legal action. She stated that “the federal money, which has already been authorized by Congress, is not only putting 1,000 current jobs at risk, but up to 100,000 workers when tunnel project is fully underway.” Sherrill further noted potential financial repercussions if work stops: contractors and heavy equipment rentals would still need to be paid. “We [will be] in breach of [our] contracts. So, at every point, we start to see costs go up exponentially if we pause the project,” she said.
In its press release about the lawsuit, GDC emphasized efforts to collaborate with federal partners and claimed it had responded “thoroughly and promptly” to all requests related to compliance with federally mandated Disadvantaged Business Enterprise (DBE) program requirements under regulations established during the Trump administration.
Sherrill also addressed what she described as political motivations behind withholding funds: “President Trump does not have the legal right to hold up [funding] for political reasons. He has pointed to no reason why this money should not continue to flow as Congress has directed.… But as we see every time Trump gets involved, working people suffer. This could be responsible for about 100,000 good jobs and a $20 billion economic impact to the region.”
When asked by a News 12 New Jersey reporter about alternative plans should federal funds remain frozen, Sherrill responded that pursuing legal action was currently their primary strategy: “New Jersey was following federal law. The [administration] just didn’t like the law. We had discussions to work things out, but they continue saying there are other reasons to hold up the money. At this point I don’t even think there is a well stated reason other than the president seems to be trying to punish the region for inexplicable reasons,” she said.
