MANHATTAN - THE GATEWAY COMMISSION SUED the U.S. Department of Transportation, alleging the agency is withholding $205,275,358 in contractually required payments for the $16 billion Hudson River rail tunnel project and forcing a potential work stoppage Feb. 6 that could cost about 1,000 jobs, reports The case, filed in the U.S. Court of Federal Claims, comes as the Gateway Development Commission warns its credit line is exhausted and contractors may be unable to keep building sites active on both sides of the river.
The $17.2 billion Hudson River tunnel project -- which received more than $11 billion in federal grants -- is repairing an existing tunnel, and building a new one for passenger railroad Amtrak and state commuter lines between New Jersey and Manhattan. Any failure of the current Hudson tunnel, which was heavily damaged during 2012's Superstorm Sandy, would hobble commuting in the metropolitan area that produces 10% of the country's economic output.