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9h ago

Gateway Commission Sues U.S. to Release Hudson Tunnel Funds Before Imminent Work Stop

Project leaders say USDOT's October freeze on $205 million now jeopardizes the $16 billion rail link.

A construction crew works on the Manhattan Tunnel Project, which is part of the Hudson Tunnel Project, in New York City, U.S., October 1, 2025. The U.S. government has paused some funds for major transit projects in New York, including the Hudson Tunnel and the Second Avenue Subway, while the Department of Transportation reviews whether any small-business contractors are engaged in improper diversity initiatives. REUTERS/Kylie Cooper
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Construction on a new set of Hudson River tunnels is well underway.
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Overview

  • The Gateway Development Commission filed a 75-page breach-of-contract case in the U.S. Court of Federal Claims seeking immediate release of $205,275,358 and enforcement of binding 2024 funding commitments.
  • Gateway warns construction will halt by Friday without payment, putting about 1,000 union jobs at immediate risk and exposing the project to costly shutdown and restart delays.
  • Federal officials first cited a review of DEI/DBE contracting when funding was paused on Oct. 1, 2025, and later tied restoration to broader political negotiations, including immigration.
  • The commission says it has provided all requested DBE documentation and remains in compliance with USDOT regulations, calling the shifting justifications unlawful.
  • The Hudson River project would add two new rail tubes and later rehabilitate the 116-year-old North River Tunnel used by Amtrak and NJ Transit, a critical Northeast Corridor link serving hundreds of thousands of riders.