The Gateway Development Commission, which is responsible for the $16 billion Hudson River tunnel project that will connect New York and New Jersey, has filed a lawsuit against the Trump administration to compel it to release federal funds. This comes just days before the project is set to stop due to the U.S. Transportation Department withholding over $205 million.
Why Gateway Commission is Suing Trump Administration?
In October, President Trump announced the end of the tunnel project by canceling all funding approved by the former administration. The commission claims that the freeze is politically driven and aims to penalize Democrats after the shutdown of the government last year.
The lawsuit filed by the gateway commission states that without federal funding this week, the commission will not be able to pay contractors. This will cause construction to come to a halt, resulting in enormous unfinished projects, threatening hundreds of construction jobs, and raising costs due to delays and penalties. The project’s future is also in jeopardy.
The Democratic Party, led by Senator Chuck Schumer, New York Governor Kathy Hochul, and New Jersey Governor Mikie Sherrill, opposed Trump’s move and joined the lawsuit. Schumer said that the lawsuit would not have been necessary if the administration had released the funds. However, the White House claimed that Democrats are politically opposed to the project.
Why Is the Hudson Tunnel Critical for New York and New Jersey?
The Hudson Tunnel, which was constructed in 1910 and suffered damage from Hurricane Sandy in 2012, is an important transportation route that serves 200,000 commuters every day. The region accounts for 10% of the GDP of the U.S., and the tunnel is therefore critical for economic purposes. The initiative involves restoring the existing tunnel and constructing a new tunnel for Amtrak and state commuter trains, with almost $2 billion expended and $15 billion in federal funding allocated.
How Does Hudson Tunnel Reflect Broader Infrastructure Politics?
The case also brings to light the larger pattern of the Trump administration choosing to target large-scale infrastructure projects in states that are led by Democrats. Earlier, the funding for the congestion pricing plan in Manhattan, which is designed to cut down traffic and generate funds for public transport, had also been withheld by Trump administration. Trump, a former real estate developer in New York City, had been opposed to the funding of the Hudson Tunnel project even in his first term.
