Overview
- Tuesday’s state lawsuit in Manhattan federal court argues the funding suspension violates the Administrative Procedure Act and asks a judge to immediately resume payments.
- The filing follows Monday night’s separate breach‑of‑contract case by the Gateway Development Commission in the U.S. Court of Federal Claims seeking release of more than $205 million.
- Federal payments have been on hold since Oct. 1 under a USDOT review of Disadvantaged Business Enterprise rules, even as the White House later linked restoration to immigration negotiations and the president declared the project “terminated.”
- Gateway officials say they provided documentation showing compliance with the updated DBE requirements, while USDOT has defended its review of race‑ and sex‑based contracting policies.
- The $16 billion project to add two new Hudson River rail tubes and rehabilitate the 116‑year‑old tunnel is continuing on a temporary credit line but could halt as early as Friday, risking about 1,000 jobs and costly site‑security and restart expenses.