New Jersey and New York have filed a lawsuit against the Trump administration, alleging the illegal withholding of $15 billion in federal funding for the Gateway project. The project aims to build new rail tunnels and rehabilitate existing infrastructure under the Hudson River between northern New Jersey and New York City. State officials warn that if additional funding is not secured by Friday, February 6, construction will halt and 1,000 jobs could be lost.
The suit was filed in federal court in the Southern District of New York. It seeks emergency relief to prevent the U.S. Department of Transportation from continuing its freeze on funds needed for ongoing construction. This legal action follows a similar lawsuit brought earlier in the week by the Gateway Development Commission against the federal government.
At a press conference at Newark Penn Station, Governor Mikie Sherrill criticized the administration’s actions as “arbitrary, capricious and illegal … and I refuse to let it happen.” She added: “For President Trump this is just about politics. It’s him using this … to hold up progress in a political fight. As usual, whenever he gets involved, costs go up and New Jerseyans get hurt.”
Sherrill emphasized that Gateway represents one of the nation’s most urgent infrastructure needs but said that federal authorities have repeatedly changed requirements even after work began.
During last fall’s government shutdown, President Trump announced his intention to “terminate” funding for Gateway, citing concerns over contract compliance with what he called “unconstitutional” diversity principles related to disadvantaged businesses.
Gateway project leaders state they have provided all requested documentation for this review but accuse federal officials of shifting demands throughout the process.
A White House spokesperson recently stated that funding would resume if congressional Democrats agreed to fully fund the Department of Homeland Security.
Sherrill commented: “First it was about the fact that they didn’t like the federal Disadvantaged Business Enterprise (DBE) requirements. Then it was about the fact that they were saying we weren’t fulfilling the DBE requirements. Now it’s about Department of Homeland Security funding,” she said. “So again and again, the goalposts are being moved, which is why we are going to court.”
New Jersey acting Attorney General Jennifer Davenport described their case as straightforward: “The Trump administration cannot unlawfully freeze billions of dollars it owes for the Gateway project. So, New Jersey and New York are jointly suing in the Southern District of New York to demand that the U.S. Department of Transportation stop this illegal suspension of funds.”
Davenport argued that suspending all project funds violates several laws: “It violates careful federal regulations that limit whether and when agencies can freeze project funds; it violates requirements that federal agencies have to give valid reasons for the decisions they make; and it reflects an unlawful effort by the president to punish political rivals by holding up this critical project.”
Addressing allegations of political motivation behind withholding funds, Davenport quoted President Trump: “‘Gateway is,’ quote, ‘Terminated because the Democrats are so foolish’ and [he] added, ‘There is no funding, because it’s up to me.’ … That should offend every American, and it’s hard to hear if you’re scheduled to lose your job this weekend,” Davenport said.
She added that states are seeking emergency relief by Friday with further action expected later in February so construction can continue uninterrupted and current workers remain employed.
