By David Shepardson
WASHINGTON, Jan 27 (Reuters) - The Trump administration's decision to suspend funding for a $16 billion project to build a new Hudson River tunnel connecting New York City and New Jersey will force work to be halted next week, officials said on Tuesday.
President Donald Trump said in October he had "terminated" the project. His Republican administration has repeatedly targeted major transit and infrastructure projects in Democratic-led states.
The Gateway Development Commission and
U.S. Representative Josh Gottheimer, a New Jersey Democrat, said at a hearing on Tuesday that the project will be suspended on February 6 if Trump does not restore the funding that was approved during the administration of former President Joe Biden. He added that about 1,000 workers will immediately lose their jobs.
Any failure of the current Hudson tunnel, which was built in 1910 and heavily damaged by Hurricane Sandy in 2012, would hobble commuting in the metropolitan area that produces 10% of the country's economic output and is used by 200,000 travelers daily. More than $1 billion has already been spent on the project.
The initiative, which received more than $11 billion in federal grants, involves repairs to an existing tunnel, and the construction of a new one for passenger railroad Amtrak and state commuter lines between New Jersey and Manhattan.
"The president’s refusal to fund the Gateway Tunnel project is not only an illegal attack on New Jersey but also shows a reckless disregard for our economy and the livelihoods of working families," said New Jersey Governor Mikie Sherrill.
The White House declined immediate comment.
USDOT told Gateway in December it had violated the law in the Disadvantaged Business Enterprise program to help small businesses run by "socially and economically disadvantaged individuals." Following a district court ruling, women and some members of minority racial groups are no longer presumed to be economically disadvantaged when bidding for contracts.
The commission said it told USDOT that it was in compliance with federal law. Trump, a former New York City real estate developer, refused to approve funding for the projects in his first term.
USDOT has repeatedly threatened New York transit funding.
In August, the department threatened to withhold 25% of federal transit funding for New York state's Metropolitan Transportation Authority if the agency does not improve safety for subway track maintenance workers. The Trump administration is also trying to kill Manhattan's congestion pricing program introduced last year, designed to reduce traffic and raise billions in funds for mass transit.
(Reporting by David Shepardson in Washington; Editing by Chizu Nomiyama and Matthew Lewis)
