The Gateway Development Commission sued the federal government on Tuesday, seeking to force the release of grant and loan funds for the Hudson Tunnel Project, a major rail effort linking New Jersey and New York under the Hudson River in New York City.
In its complaint filed in the U.S. Court of Federal Claims, the commission said the U.S. Department of Transportation (USDOT) has unlawfully suspended reimbursements and other disbursements since late September 2025, despite binding agreements that secured roughly $15 billion in federal commitments for the project.
The commission said USDOT has withheld about $205.3 million in payments due on or before Feb. 2 and warned it would be forced to suspend work on Feb. 6 if funding does not resume, after drawing down reserves and a line of credit to keep construction moving….
NY-NJ Gateway Commission Sues Federal Government Over Hudson Tunnel Funds
