Gateway Commission Files Federal Lawsuit as Governor Takes to the Airwaves

By Anthony Birritteri, Editor-in-Chief On Feb 3, 2026

The Gateway Development Commission (GDC) has filed a lawsuit against the federal government in the U.S. Court of Federal Claims seeking judgement that would release contractually obligated grant and loan funds for the Hudson Tunnel Project (HTP). If additional funding isn’t available by this coming Friday, Feb. 6, construction on the tunnel will pause, resulting in the loss of 1,000 jobs.

Seventy percent of the Hudson Tunnel Project’s $16 billion budget – roughly $12 billion – is funded by federal grants. The other $4 billion is funded through USDOT Build America Bureau loans to be repaid by the States of New York and New Jersey and by the Port Authority of New York and New Jersey. Funding disbursements from all these sources have been discontinued since Oct. 1 of last year.

Gov. Mikie Sherrill appeared on various news programs this morning in support of the GDC lawsuit, saying that the federal money, which has already been authorized by Congress, is not only putting 1,000 current jobs at risk, but up to 100,000 workers when tunnel project is fully underway.

Additionally, she said that if work stops on the project, contractors and heavy equipment that are being rented must be paid for. “We [will be] in breach of [our] contracts. So, at every point, we start to see costs go up exponentially if we pause the project,” the governor said.

In a press release announcing the lawsuit, the GDC said it has been trying to work cooperatively with its federal partners to meet their requirements for restoring funding. It said it has responded “thoroughly and promptly” to each request of information about the project’s federal-mandated Disadvantaged Business Enterprise (DBE) program and provided documentation that the project is in compliance with the Trump administration’s latest regulations.

Meanwhile, Sherrill said, “President Trump does not have the legal right to hold up [funding] for political reasons. He has pointed to no reason why this money should not continue to flow as Congress has directed. … But as we see every time Trump gets involved, working people suffer. This could be responsible for about 100,000 good jobs and a $20 billion economic impact to the region.”

When asked by a New 12 New Jersey reporter if there was a backup plan if federal funds remain frozen, Sherrill said the lawsuit is the “fight for now.”

“New Jersey was following federal law. The [administration] just didn’t like the law. We had discussions to work things out, but they continue saying there are other reasons to hold up the money. At this point, I don’t even think there is a well stated reason other than the president seems to be trying to punish the region for inexplicable reasons,” Sherrill said.

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