New Jersey Leaders Push Back as Federal Funding Dispute Threatens Hudson River Tunnel Project

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New Jersey leaders and Democratic lawmakers are increasing their fight with the Trump administration as a federal funding suspension threatens Gateway Tunnel construction beneath the Hudson River. The federal court dispute threatens Northeast rail travel, passenger safety, and jobs.

Under overcast skies, New Jersey’s Democratic congressional delegation stood with hard-hatted Hudson River tunnel builders in Weehawken. Governor Mikie Sherrill said the state won’t let the Gateway Tunnel project fail due to the federal government’s unlawful withholding of funds.

New York and New Jersey are suing Trump and the DOT for wrongfully suspending congressionally allocated funding during last fall’s government shutdown. At a Friday afternoon court session, officials said tunnel work may stop without financing.

Governor Sherrill said the action is legal and protects workers. She accused the Trump administration of altering its demands and disregarding Congress, saying the finance was legitimate and should never have been halted.

The case was not immediately addressed by federal transportation officials.

Political worry rose after reports that President Trump would reinstate funding only if Penn Station and Dulles International Airport were renamed after him. New Jersey lawmakers were furious when Senate Majority Leader Chuck Schumer rejected the idea.

Frank Pallone criticized the notion, suggesting landfills or Superfund cleanup sites for president honors. Pallone said the budget freeze harms workers, commuters, and the regional economy, not simply politics.

State leaders claim the cash restriction is Trump’s political payback against New York and New Jersey over immigration. White House spokeswoman: Democrats can make progress by cooperating with federal immigration enforcement and prioritizing American interests.

NY Governors Kathy Hochul and Sherrill termed the funding restriction illegal and harmful to area jobs and economic stability. The Gateway Development Commission also sued for immediate project funding.

The Gateway Tunnel project will build two Hudson River rail tubes and rehabilitate 116-year-old tunnels. One of the nation’s busiest and most essential rail crossings, these old tunnels carry 200,000 Amtrak and NJ Transit passengers daily.

Officials warn that 1,000 workers and Northeast Corridor rail operations might be disrupted without funding. New Jersey politicians warned of dire consequences if failed.

Representative Rob Menendez slammed the president for playing political games while workers and commuters suffer. Representative Josh Gottheimer remarked that both parties recognize century-old infrastructure vulnerabilities. He warned that a large tunnel failure would be catastrophic and blame the White House.

Senator Cory Booker says the financing choice violates bipartisan promises and congressional agreements. He said the initiative would upgrade vital infrastructure through cross-party cooperation.

Nellie Pou noted that the tunnels predate many medical and engineering advances, emphasizing their relevance. She anticipated tunnel failure and catastrophic damage to New Jersey and the Northeast.

State officials will resist, said Rep. LaMonica McIver. Governor Sherrill closed by committing to fight in court and politics to protect workers, commuters, and the region’s transportation network.

One of the nation’s most important train infrastructure projects is being decided by the courts, affecting thousands of jobs and millions of travelers.

Sources

U.S. Department of Transportation
Gateway Development Commission
Office of the Governor of New Jersey
United States Congress

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