In Hoboken, after a press conference concerning an unrelated federal funding allocation, U.S. Rep. Rob Menendez (D-8) discussed the restoration of approximately $205 million in federal funding for the Hudson Tunnels portion of the roughly $16 billion Gateway project, which is intended to enhance rail travel throughout the New York Metropolitan area. The funding had been frozen in September of last year by the Trump Administration.
- A federal court overturned the Trump Administration’s September funding freeze and ordered the release of approximately $205 million for the Hudson Tunnel Project after a four-month legal challenge by New Jersey, New York, and the Gateway Development Commission.
- The funding freeze caused a work stoppage and more than 1,000 layoffs before U.S. District Judge Jeannette Vargas ruled that the contractually obligated grant and loan funds must be released.
- Despite the ruling, Donald Trump publicly criticized the project as a “future boondoggle,” while Transportation Secretary Sean Duffy moved to appeal the decision to the 2nd Circuit.
Funding Freeze Led to Work Stoppage and Legal Action
The freeze triggered a work stoppage and more than 1,000 layoffs of project laborers. In response, the States of New Jersey and New York, along with the Gateway Development Commission, filed legal action to secure the release of contractually obligated grant and loan funds for the Hudson Tunnel Project (HTP). After four months, U.S. District Judge Jeannette Vargas of the Southern District of New York overturned the freeze and ordered the funds released so the project could continue.
Menendez said the states and the commission had strong legal standing from the beginning.
“We always knew we were on the right side of this,” he said. “We were ultimately going to prevail. It should have never come to this. The Trump Administration should have never withheld the funding.”
He described the Hudson Tunnels project as the most important infrastructure project in the entire country and said the administration is obligated under the law to provide the funding. He attended both of Gov. Mikie Sherrill’s Gateway press conferences last week and said the administration should stop what he called political games so organized labor workers, who are on schedule and on budget, can continue advancing the project.
Ongoing Political Tensions and Appeal
When asked whether the dispute is over, Menendez said he does not trust the Trump Administration regarding the release of congressionally appropriated funds and that lawmakers will remain vigilant in case of further action affecting the project.
Opposition from Donald Trump has continued. In a post on Truth Social, Trump called the project a “future boondoggle” that “will cost many BILLIONS OF DOLLARS more than projected” and said it would be “financially catastrophic for the region, unless hard work and proper planning is done, NOW.”
Transportation Secretary Sean Duffy is appealing the district court’s decision, and the case may be heard by a judge in the 2nd Circuit as early as next week. According to Politico, Trump has indicated a willingness to meet with local officials to discuss the project.
Renaming Proposals and Republican Silence
Menendez also spoke against any concession to Trump in the form of renaming Penn Station in New York or Dulles International Airport in Washington, D.C. after himself, an idea cited in numerous news reports though never publicly stated by the president. He said appeasing such actions would lead to further political demands.
“This is one of the reasons I was so against the idea that he would want to put his name on Penn Station,” Menendez said. “Because then there would be Dulles Airport, and there’ll be this, and he’ll always be moving the goal post. That’s not how government is supposed to work.”
He also referenced what he described as silence from New Jersey Republicans, including U.S. Rep. Tom Kean Jr. (R-7), as the administration continues to oppose the project.
Local Governments Rally Behind Hudson Tunnel Project
As the legal challenge progressed, local and county governments rallied for the funding to resume so construction workers and related laborers could return to their jobs. Support came from the Hudson County Board of Commissioners, the Kearny Town Council, and others who called for the administration to release the funds tied to the multi-state infrastructure project.
In a formal statement following the legal action by New Jersey, New York, and the Gateway Development Commission, Menendez called the funding freeze illegal retaliation against Democratic lawmakers and said it disregarded the severe economic damage caused by what he described as political games. He said the integrity of commuter rail infrastructure was at risk, along with tens of thousands of union jobs, and that the administration cannot freeze congressionally appropriated funding without justification.
