The Gateway Development Commission sued the Trump administration Tuesday for withholding funding from a $16 billion tunnel project between New York and New Jersey.
The Department of Transportation’s “breach has jeopardized the project, threatened the livelihoods of the countless workers employed in its construction, endangered passengers who must rely on decaying, century-old rail infrastructure, and undermined the United States’ reputation as a reliable contracting party,” the commission said in court documents.
The administration told the Gateway Development Commission in September 2025 that it would withhold nearly $18 billion for the Hudson Tunnel Project and another infrastructure project in New York, the Second Avenue Subway, over allegations that contractors involved in the projects used race- and sex-based measures in hiring and staffing.