Trump, Sherrill spar over Gateway funding freeze

The basics:

• President Donald Trump opposes Gateway Tunnel project, calls it potential ‘boondoggle’ 
• Trump administration froze federal funding; stopping construction, sidelining 1,000 workers
• New Jersey Gov. Mikie Sherrill vows to continue fighting to restore funding, jobs
• US Sen. Andy Kim criticizes Trump’s stance, emphasizes bipartisan support for Gateway

The political and legal fight over the Gateway Tunnel project is intensifying, with rhetoric escalating on both sides.

President Donald Trump wrote a lengthy screed on Truth Social about the project Feb. 16. He described it as a potential “boondoggle,” warning of massive cost overruns. The president also declared that the federal government will not cover a single dollar beyond its existing commitments.

The administration’s funding freeze halted construction on the massive infrastructure project earlier this month. The stoppage sidelined roughly 1,000 workers, triggering lawsuits from New Jersey, New York and also the Gateway Development Commission.

As NJBIZ previously reported, an appeals court declined to block a lower court order requiring the release of more than $200 million in frozen funds while the legal process plays out. The first $30 million was restored just before the holiday weekend. The federal government is processing the rest of that tranche, which is expected to clear early this week.

Gov. Mikie Sherrill held a press conference Friday in Secaucus. Speaking on the heels of the appeals court ruling, she stressed that New Jersey would continue fighting in court (along with New York) until every worker is back on the job.

Trump’s point of view

That’s where things stood as of Monday afternoon when Trump weighed in via his Truth Social platform:

“I am opposed to the future boondoggle known as the ‘Gateway’ in New York/New Jersey, because it will cost billions of dollars more than projected or anticipated, just like Gavin Newscum’s ‘Railroad,’ which is massively over budget, has no end in sight, and could financially destroy whatever is left, after Newscum, of the California economy,” Trump wrote.

“It’s a disaster! Gateway will also be financially catastrophic for the region, unless hard work is done and proper planning is put in place, NOW, to prevent future insurmountable cost overruns. Please let this statement represent the fact that, under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS, NOT ONE SINGLE DOLLAR! However, the Federal Government is willing to meet to make sure this does not happen,” he continued.

“Also, change the name of the PENN Station (I LOVE Pennsylvania, but it is a direct competitor of New York, and it’s ‘stealing New York’s lunch!’) to TRUMP. The issue of the STATION was brought up by certain politicians and construction union leaders, not by me. JUST MORE FAKE NEWS! NO COST OVERRUNS! Thank you for your attention! President Donald J. Trump.”

What Sherrill says

That led to a quick response from Sherrill.

“The only person who can make Gateway a boondoggle is Donald Trump. Until his illegal actions forced the project to shut down, threw 1,000 hard-working men and women off the job, and threatened the commutes of 200,000 people a day, Gateway was on time and on budget,” said Sherrill in a statement.

“Donald Trump’s ridiculous political rhetoric is just another effort to get out of paying what the federal government owes to the most urgent infrastructure project in the country. We won’t let him. We’ll keep taking him to court, and we’ll keep winning, until the Gateway Tunnel’s entire funding is once again secured.”

Democratic U.S. Sen. Andy Kim also responded to the president’s post on social media. “A completely unhinged tantrum from someone who didn’t get their way,” he wrote. “I don’t know one person in NJ, Republican or Democrat, who doesn’t see the power and value of the Gateway Tunnel Project.”

More to come

The Trump administration had been somewhat tight-lipped about the situation over the last two weeks as the legal battle has played out. Meanwhile, Sherrill has held multiple events on the topic. The governor has also stayed on the offensive through social media messaging and television hits.

This remains very much a developing situation. With funding flowing again, as the legal battle plays out on two fronts, it establishes a high-stakes standoff over one of the nation’s most critical infrastructure projects.

Please stay with NJBIZ for the very latest on this story.