"In the Feb. 2 suit, filed in the U.S. Court of Federal Claims, lawyers for the GDC argue that Trump's U.S. Department of Transportation (USDOT) is in breach of a contract the agency inked with GDC under former President Biden's administration. Under the accord, USDOT committed to funding the Gateway tunnel to the tune of $15 billion representing 90% of the $16 billion project through a series of federal grants."
"GDC lawyers wrote that they intend to ask the court to fast-track the proceedings as the commission has warned that work on the project will grind to a halt indefinitely if the feds do not release $205 million in reimbursements they have already withheld by Friday. Due to the time pressure for unfreezing the funds, attorneys for the commission said they will ask the court for an expedited partial summary judgment briefing schedule."
"An indefinite pause on the Gateway project would mean the immediate loss of 1,000 union jobs and could permanently derail the entire undertaking, GDC's lawyers warned in the suit. DOT's breach has jeopardized the project, threatened the livelihoods of the countless workers employed in its construction, endangered passengers who must rely on decaying, century-old rail infrastructure, and undermined the United States' reputation as a reliable contracting party, the suit reads. This court's intervention is urgently needed to redress these breaches."
The Gateway Development Commission sued the U.S. Department of Transportation in the U.S. Court of Federal Claims seeking release of $205 million in withheld reimbursements tied to the Hudson River tunnel project. The suit alleges USDOT breached a federal funding agreement that committed $15 billion—90% of the $16 billion Gateway project—via federal grants. The commission seeks expedited proceedings and partial summary judgment to prevent an imminent work stoppage as early as Friday. The complaint warns that a pause would eliminate roughly 1,000 union jobs, imperil passengers relying on aging rail infrastructure, jeopardize the project's completion, and harm the United States' reputation as a contracting party.
Read at www.amny.com
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