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NY & NJ Sue to Unfreeze Crucial Hudson River Tunnel Funding

NY & NJ Sue to Unfreeze Hudson River Tunnel Money

Quick rundown

New York and New Jersey just filed a joint lawsuit asking a federal court to restart halted federal payments for the big Hudson River tunnel project. This follows a separate suit from the Gateway Development Commission, which manages the $16 billion effort. Officials warn that the cash freeze could force construction to stop as early as this week.

Why they’re suing (in plain English)

The states say the administration’s sudden decision to hold the money hurts everyday commuters and breaks the rules. Unlike the Gateway suit, which focuses on contract disputes, New York and New Jersey argue the cut-off violates federal administrative law because it doesn’t have a proper legal basis.

Short timeline you can actually remember

During last fall’s federal showdown, the White House said it would pull funds for the tunnel project while it reviewed compliance with rules about awarding contracts to women- and minority-owned businesses. Project leaders say they followed the requests, but the cash never came back.

Why we should care (Hint: trains)

The new tunnels are meant to let crews close and repair the century-old tracks that serve NJ Transit and Amtrak, which were hurt by Hurricane Sandy. Project managers say those old tubes are in bad shape and won’t be fixed until the new ones are ready — which isn’t expected until the mid-2030s. So if this work stops now, riders and the regional economy could feel the pain for a very long time.

The political tug-of-war

The White House has linked continued funding to broader negotiations in Washington — including full funding for Homeland Security — and to its review of contract compliance. State officials pushed back, saying the project met federal requests and that tying the money to other political fights is unfair to commuters.

What the states want from the court

New York and New Jersey are asking the judge to order the federal government to resume payments so construction can keep moving. The case argues the freeze is harming people now and lacks legal justification, so a court order is the quickest fix.

Sound bites and who’s talking

State leaders are sounding the alarm about transit chaos and economic fallout if the project stops. Federal spokespeople hadn’t responded immediately to requests for comment at the time of the filing.

Bottom line

This is round two of lawsuits over the same funding freeze. If the court sides with the states, construction can proceed. If not, the region faces delayed repairs, potential service disruptions, and a long, expensive headache for anyone who rides the rails.