ReferIndia News States Battle Federal Government in $16 Billion Rail Tunnel Funding Clash

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States Battle Federal Government in $16 Billion Rail Tunnel Funding Clash

Published on: Feb. 4, 2026, 7:12 a.m. | Source: Devdiscourse

New York and New Jersey have filed a lawsuit against the Trump administration for freezing $16 billion in federal funding for a crucial rail tunnel project. The halt could disrupt ongoing construction between the states. Legal action seeks to resume funding, emphasizing the economic stakes involved.

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