Overview
- The states filed in the Southern District of New York seeking emergency relief, arguing the funding suspension violates the Administrative Procedure Act and harms residents and the regional economy.
- Their case follows a separate Gateway Development Commission breach-of-contract suit in the U.S. Court of Federal Claims demanding release of $205,275,358 in withheld reimbursements.
- Payments have been frozen since Oct. 1, 2025, with federal rationales shifting from a review of Disadvantaged Business Enterprise rules to political demands tied to immigration and Homeland Security funding.
- Project officials warn work could stop by Friday without the federal funds, jeopardizing about 1,000 jobs immediately and triggering costly site security and remobilization expenses estimated at $15–$20 million per month.
- The Hudson Tunnel project is a roughly $16 billion effort backed by about $15 billion in federal commitments to add new tubes and later rehabilitate 116-year-old rail tunnels used by Amtrak and NJ Transit, with nearly $2 billion already spent and major construction sites active in both states.