New York, New Jersey Sue Trump Administration over Tunnel Funding Halt

Reuters

11:04 JST, February 4, 2026

WASHINGTON, Feb 3 – New York and New Jersey late on Tuesday sued the Trump administration seeking an emergency court order to force the restoration of funding for the massive $16 billion Hudson River tunnel before construction is set to halt on Friday.

U.S. 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 administration of President Joe Biden.

The suit in U.S. District Court in Manhattan filed by New York Attorney General Letitia James and acting New Jersey Attorney General Jennifer Davenport follows a court challenge filed on Monday by the Gateway Development Commission, which has said it will halt construction this week without funding, putting about 1,000 workers out of work.