A tri-state-area commission is suing the Trump administration for cutting off funding to the $16 billion Gateway tunnel project across the Hudson River while it probes possible “racist DEI’’ contracts.
The Gateway Development Commission filed suit in Washington federal court Monday night alleging that the US Department of Transportation breached both parties’ contract by withholding more than $205 million in funds, which will halt work on the tunnel by Friday.
The Hudson River tunnel project is meant to replace aging rail lines damaged by Hurricane Sandy. Getty Images
“If additional funding does not become available by February 6, 2026, construction of the [Hudson Tunnel Project] will have to pause, resulting in the loss of nearly 1,000 jobs,” the GDC wrote in a press release.
President Trump had warned that he would terminate funding for the project — meant to replace aging rail tunnels damaged by Hurricane Sandy — at an October press conference.
He claimed the project needed a DEI review, which was being held up at the time by a government shutdown.
“This administration has concerns that the contracts awarded are inconsistent with civil-rights laws and the constitution because they were given based on racist DEI,” a source told The Post at the time.
“Thus, a review of contracts awarded under [former President Joe] Biden is required.”
But the GDC contends that the Trump administration is contractually obligated to see through its end of the deal, citing a binding agreement signed by the parties in July 2024.
The $16 billion project could come to a screeching halt as soon as Friday. Getty Images
White House rep Kush Desai put out a statement last week to multiple outlets blaming Sen. Chuck Schumer (D-NY) and other Democrats for the funding freeze.
“It’s Chuck Schumer and Democrats who are standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration,” he said. “There is nothing stopping Democrats from prioritizing the interests of Americans over illegal aliens and getting this project back on track.”
Since Monday’s filing, Schumer, along with New York Dem Gov. Kathy Hochul and fellow Democratic New Jersey Gov. Mikie Sherrill and a slew of other tri-state pols, have come out in defense of the GDC.