Commission sues Trump administration over refusal to restore New York tunnel funding - UR JRNL

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Monday, February 2, 2026

Commission sues Trump administration over refusal to restore New York tunnel funding

Commission sues Trump administration over refusal to restore New York tunnel funding

WASHINGTON, Feb 3 (Reuters) - The commission overseeing a massive $16 ​billion Hudson River tunnel, the ‌linchpin of rail travel between New ‌York and New Jersey, filed suit late on Monday to force the Trump administration to ⁠restore funding ‌just days before it is set to halt ‍construction.

President Donald Trump said in October he had terminated the project and ​the Transportation Department has refused ‌to release any funding for the project approved during the prior administration.

The Gateway Development Commission, created in 2019 to ⁠oversee the project, ​filed suit in ​the U.S. Court of Claims, saying the Transportation Department ‍breached its ⁠contractual obligations by withholding over $205 million without any legal ⁠basis to do so.

(Reporting by David ‌Shepardson in Washington; Editing ‌by Christian Schmollinger)