PIX 11 News: Trump administration sued to restore funding for Gateway Tunnel Project
Published on Feb 3, 2026
Trump administration sued to restore funding for Gateway Tunnel Project
Posted: Feb 3, 2026 / 07:12 AM EST, Updated: Feb 3, 2026 / 09:29 PM EST
by: Dominique Jack, Greg Mocker
NEW YORK (PIX11) — Construction on the Gateway Tunnel Project could come to a halt by Friday without federal funding, but the Gateway Development Commission is making one last effort to prevent that from happening.
The Commission filed a lawsuit against the federal government in the U.S. Court of Federal Claims on Monday. The suit seeks to have the Trump administration release grant and loan funds for the Hudson Tunnel Project ahead of Friday’s deadline. The federal government suspended its funding of the project on Oct. 1, 2025, after the Trump Administration and the U.S. Department of Transportation said it would perform a review of contracts awarded to Minority- and Women-owned Business Enterprises. The government shutdown in November later interrupted the process.
Officials with the Gateway Development Commission say they have promptly responded to the Administration’s requests for information about the Gateway Tunnel Project’s program for Disadvantaged Business Enterprise (DBE). They argue that although they have provided documentation that the project complies with the Administration’s latest regulations, the federal government has responded with “shifting explanations.”
“I made a commitment to fight for Gateway and New Jersey’s economy, which is why we’re taking action to hold the Trump Administration accountable for breaching its contract,” said New Jersey Governor Mikie Sherrill.
“The Gateway Tunnel is essential to the future of New York and the economy of the entire region – every day, 200,000 commuters who power 20% of the nation’s economy depend on a safe, reliable ride under the Hudson River,” said New York Governor Kathy Hochul.
Construction has been underway for more than two years, with crews working on Manhattan’s West Side near the High Line, in the Hudson River, and in New Jersey near Tonnelle Avenue.
But workers now face uncertainty about whether construction can continue past Thursday.
“It’s not like saying, ‘Close the office and lock the doors,’” said Carlo Scissura, president of the New York Building Congress. “We have to shut it down and send people home.”According to the complaint, the U.S. Department of Transportation is accused of failing to disburse $205 million in funding so far “without identifying any contractual basis for withholding.”
Scissura said the ongoing delay is unacceptable. “Enough is enough,” he said. “It’s insanity. Move forward. Release the money by Friday.”
With no public movement from the Trump administration, the project is asking the judge to order the release of the funds. Project leaders argue that the money was already approved by Congress and that a binding contract exists.
New Jersey Gov. Mikie Sherrill fought for the project while serving in Congress.
“The goalpost keeps moving,” Sherrill said. “At the end of the day, it’s illegal. He needs to release those funds.”
Supporters of the project say the stakes go far beyond construction jobs. Sherrill emphasized the impact on commuters who rely on the rail system daily.
Jerry Keenan, president of the New Jersey Alliance for Action, which advocates for infrastructure investment and economic development, warned that delays could have lasting consequences.
“We are facing a nightmare,” Keenan said. “Time is money. This is jobs, the economy, the environment, and getting people onto trains. If we don’t move forward, we lose all that.”
The White House did not respond to a request for comment on Tuesday. Last week, a White House spokesperson said Senate Majority Leader Chuck Schumer and Democrats need to negotiate certain immigration-related issues.
