The Trump administration froze funding for the Hudson River Gateway Project in September, citing the government shutdown

NEW YORK (WABC) -- New York and New Jersey have sued the Trump administration for freezing $16 billion in federal funding for a new rail tunnel under the Hudson River between the two states, seeking a quick ruling because construction underway could be halted as early as Friday.
This goes back more than 16 years, starting and stopping.
The train tunnels - one in, one out - of Manhattan that connect DC to Boston are 116 years old. They are to be refurbished, and two more brand new tunnels added.
But now President Trump and his Transportation Department are holding up funding already passed by Congress.
At Newark Penn Station, one of two pieces of giant boring equipment to spiral through a mile of rock leading up to and under the Hudson River to create the Gateway tunnels is already in place. Digging was to begin in weeks. But the only place this project is headed after Friday's deadline, when the money runs out, is to court.
The lawsuit, filed in federal court in Manhattan on Tuesday night by New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport, seeks a judge's declaration that the funding suspension is unlawful and an order to resume payments immediately so construction can continue without interruption.
Both governors Kathy Hochul and Mikie Sherrill said they will fight this effort by the Trump administration.
"Donald Trump's revenge tour on New York threatens to derail one of the most vital infrastructure projects this nation has built in generations, putting thousands of union jobs and billions of dollars in economic benefits in jeopardy and threatening the commutes of 200,000 riders," Hochul said.
"The states of New York and New Jersey joined together to sue the Trump administration to force it to stop holding the Gateway tunnel project hostage in a political fight. Congress appropriate the money for Gateway," Sherill said.
The $15 billion project is already $1 billion underway... a budget threequarters paid for by the federal government - a done deal by the end of President Biden's term. New York and New Jersey were to split the balance of about $3 billion.
But come Friday, unless President Trump frees up funding, everything stops.
The Gateway Development Commission also filed a lawsuit in federal court in Washington, alleging that the U.S. Department of Transportation breached its contractual obligations by withholding more than $205 million without legal basis, claiming the funds were withheld to punish Democrats over last fall's government shutdown.
New Jersey Acting Attorney General Davenport says the president made his position public.
"He publicly announced Gateway is 'term terminated because the Democrats are so foolish' and added there is no funding because it is up to me. That should've been every American. Probably pretty hard to hear if you're scheduled to lose your job this weekend," Davenport said.
Those comments echo words President Trump used in October when he moved to stop the project.
"Billions and billions of dollars that Schumer has worked 20 years to get, it's terminated," he said.
Congressman Josh Gottheimer of New Jersey's 5th District called the move political.
"Bullshit - not just BS," Gottheimer said.
He says pulling the funding violates existing commitments.
"First, we have a contract. Secondly, Congress has appropriated the resources. Third, we know the tunnels need to be replaced and fixed," he said.
He added the project would have broad economic impact.
"It'll be great for the economy. Great for jobs. Great for commuters and families and great for the country where 20% of the GDP runs through," Gottheimer said.
Governor Sherill says President Trump has the power to put the project back on track with a phone call, but because Congress voted for the contract, she is confident in the outcome.
"Likely we will prevail," she said.
Transportation Secretary Sean Duffy has called the Gateway project "discriminatory" and "unconstitutional."
Now there are two lawsuits filed over the project and just two days to sort it out.
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Some information from the Associated Press
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