GDC Sues US For $205M Hudson Tunnel Funds; Halt Feared Feb 6

The Gateway Development Commission (GDC) has initiated legal action against the U.S. federal government in the U.S. Court of Federal Claims. The lawsuit seeks the release of contractually obligated funds for the Hudson Tunnel project. Commission officials state that without an immediate infusion of capital, all construction activity will be suspended by Friday.

The legal filing specifies that the Trump administration suspended $205 million in payments four months ago, which the commission argues is an illegal freeze of congressionally appropriated funding. The GDC, an entity controlled by Amtrak and the governors of New York and New Jersey, warns this action directly threatens the project’s continuation. Work sites located in both states and beneath the Hudson River are scheduled for shutdown by February 6.

The Hudson Tunnel project is a primary component of the larger Gateway Program, designed to improve rail capacity in the Northeast Corridor. The scope includes constructing a new two-track rail tunnel and performing a complete rehabilitation of the existing, century-old North River tunnels. These tunnels are essential for daily Amtrak and New Jersey Transit passenger services between New Jersey and New York City.

The lawsuit asserts that the GDC cannot continue construction beyond the end of the week without the disputed funds. The financial shortfall directly jeopardizes ongoing work and the employment of trade union workers assigned to the project. The commission’s court filing aims to compel the federal government to release the funds and adhere to its contractual obligations.

The court’s decision on the release of the $205 million will determine the immediate future of the project. A prolonged suspension would introduce significant delays and cost overruns to the Northeast Corridor’s most critical infrastructure upgrade.