The agency in charge of the $16bn Hudson Tunnel Project in New York and New Jersey sued the Trump administration on Monday, 2 February over its refusal to disburse contractually-obligated federal funding for it.
Numerous leading construction firms including Parsons, Mace, Arcadis, Lane and Tutor Perini had been working on the project to build new rail tunnels under the Hudson River when the administration froze funding on 1 October last year, citing various reasons that the Gateway Development Commission (GDC) argue are unlawful.
It said it had been using available funding sources and credit to keep the project going but that if federal funds were not released by this Friday, 6 February, the project would have to be put on hold, leading to the immediate loss of nearly 1,000 jobs.
It has asked the US Court of Federal Claims for a judgement that would release $205m, comprised of requests to draw down funds for the project made since August last year. Most of the project’s funding comes from federal grants and loans contractually agreed upon in 2024.
It’s also seeking damages that will be incurred in a construction pause or by the termination of existing contracts.
The GDC said an extended pause would put 11,000 jobs on the multifaceted project at risk.
‘Most urgent rail scheme in US’
The GDC calls the project the “most urgent” rail infrastructure scheme in the US because it will eliminate a serious chokepoint on the Northeast rail corridor, the country’s busiest.
Choking it is the 116-year-old North River twin rail tunnels under the Hudson, which are badly in need of repair. Trains passing through them are delayed nearly two out of every three days owing to maintenance needs.
Scheduled for completion in 2038, the project will replace these two old rail tubes with four new ones by building a brand new twin-tube tunnel and rehabilitating the old North River tunnels.
‘Brazen act of political retribution’
“The Gateway Tunnel is essential to the future of New York and the economy of the entire region ,” New York Governor Kathy Hochul said.
“Every day, 200,000 commuters who power 20% of the nation’s economy depend on a safe, reliable ride under the Hudson River. For months, Donald Trump and his enablers in Washington have illegally withheld committed funding for this project in a brazen act of political retribution intended to hurt New Yorkers, putting thousands of union jobs and billions of dollars in economic benefits at risk.
“I said New York would fight like hell to keep this project moving and today, that is exactly what we are doing.”
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