Overview
- The states filed suit in the Southern District of New York seeking emergency relief to resume federal payments for the $16 billion Hudson River rail tunnel project.
- The action follows a separate Gateway Development Commission case in the U.S. Court of Federal Claims alleging breach of contract over roughly $205 million withheld since Oct. 1, 2025.
- Project leaders say construction could halt as soon as Friday after exhausting a line of credit, threatening about 1,000 jobs and triggering costly site‑security and restart expenses.
- The administration has offered shifting reasons for the freeze, initially citing a DEI/DBE review during the shutdown, later tying restoration to immigration and Homeland Security funding, as the president said he had “terminated” the project.
- Backers stress the tunnel’s role on the Northeast Corridor, with the 116‑year‑old existing tubes carrying about 200,000 daily riders and repairs planned only after new tunnels open.