
New York and New Jersey sued the Trump administration on Tuesday for freezing $16 billion in federal funding for a new rail tunnel under the Hudson River between the two states, seeking a quick ruling because construction that has been underway could be forced to shut down as early as Friday.
The administration put a hold on the funding in September, citing the government shutdown. The White House budget director, Russ Vought, said on the social platform X at the time that officials believed the spending was based on unconstitutional diversity, equity and inclusion principles, and the U.S. Department of Transportation said it was reviewing any “unconstitutional practices."