NEW YORK, New Jersey (Fox News) — New York and New Jersey sue the Trump administration for cutting off $16 billion in federal funding for a new rail tunnel project under the Hudson River.

## Lawsuit Filed Over Frozen Funding
The lawsuit alleges the federal government illegally withheld funds committed to the Gateway project, risking thousands of jobs and increased operating costs for the states.

## Project Details and Criticism
The project aims to create new tunnels and rehabilitate existing ones, crucial due to their age and previous damage from Hurricane Sandy in 2012. Both governors criticize the administration’s actions as detrimental to the region’s economic future.

## Legal Action and Response
New York and New Jersey officials vow to challenge the freeze on funding, emphasizing the potential job losses and commuter disruptions if the project halts. The White House and Department of Transportation have been contacted for comment.

## Conclusion
A separate lawsuit by the Gateway Development Commission has also been filed against the federal government. The ongoing legal battle highlights the stakes involved in securing funding for critical infrastructure projects.