Overview
- The Gateway Development Commission filed a 75-page breach-of-contract case in the U.S. Court of Federal Claims late Monday, asking the Transportation Department to release more than $205 million withheld since October and to honor about $15 billion in federal commitments.
- Federal payments were suspended starting Oct. 1, 2025, with officials offering varying rationales that included a DEI/DBE compliance review, the president’s claim the project was “terminated,” and calls for Democratic concessions on immigration.
- The commission says it has met federal requirements and provided documentation showing compliance with the Disadvantaged Business Enterprise program under the administration’s updated rules.
- Project managers warn construction on the $16 billion Hudson River Tunnel could stop as soon as Friday, threatening roughly 1,000 jobs and risking delays for a key segment of the Northeast Corridor.
- New York and New Jersey leaders, including Sen. Chuck Schumer and Gov. Kathy Hochul, back the lawsuit, while a recent White House statement blamed Democrats for the impasse and federal agencies did not comment late Monday.