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Trump Administration Faces Legal Challenges Over Hudson River Tunnel Funding
The Trump administration is facing legal action from New York and New Jersey after allegedly cutting off $16 billion in federal funding for the Gateway project, a new rail tunnel under the Hudson River. The lawsuit, filed Tuesday, accuses the federal government of "illegally withholding" funds previously committed to the project, according to Fox News. The states are seeking emergency relief to compel the U.S. Department of Transportation (DOT) to release the frozen funds.
New York and New Jersey claim that the project, already underway, could be forced to shut down as early as Friday if the funding is not restored. This shutdown could potentially eliminate thousands of jobs and saddle the states with significant financial burdens.
The Gateway project aims to improve rail infrastructure connecting New York and New Jersey, a critical transportation artery for the Northeast. The states argue that the federal government's actions threaten the region's economy and transportation network.
This legal challenge comes amid other initiatives from the Trump administration aimed at addressing affordability concerns. The administration is reportedly considering a plan to allow Americans to use their 401(k) retirement accounts for a down payment on a home, though the president is reportedly "not a huge fan" of the idea, according to Fox News. Other proposals have included exploring 50-year "eternal" mortgages and encouraging Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower interest rates.
Meanwhile, in Oregon, a judge issued a temporary order restricting federal officers from using tear gas at protests outside the Immigration and Customs Enforcement (ICE) building in Portland. U.S. District Judge Michael Simon instructed federal officers not to use chemical or projectile munitions on individuals who pose no imminent threat of physical harm or who are merely trespassing or refusing dispersal orders. The ruling followed instances where agents deployed gas at demonstrators, including young children, despite the mayor describing the assembly as peaceful, according to Fox News.
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