Politics
Trump admin sued by New York, New Jersey over Hudson River tunnel funding freeze: ‘See you in court’
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New York and New Jersey sued the Trump administration Tuesday for cutting off $16 billion in federal funding for a new rail tunnel project under the Hudson River connecting the two states.
The federal government is accused of “illegally withholding” funding committed to the Gateway project and the two states are seeking emergency relief to force the release of funds frozen by the U.S. Department of Transportation (DOT).
With construction already underway, the states are seeking a quick ruling because the project could be forced to shut down as early as Friday, potentially eliminating thousands of jobs and saddling the states with significant new operating costs.
The lawsuit, filed in the Southern District of New York, comes after the Trump administration froze billions of dollars during the government shutdown last fall tied to the project, as well as funding for the extension of New York City’s Second Avenue Subway.
TRUMP ADMIN SEEKING TO PULL FUNDING FROM LOCAL GOVERNMENTS SLAPPED WITH JUDGE’S PRELIMINARY INJUNCTION
Construction continues on the Gateway Tunnel project to connect New Jersey to Penn Station on Oct. 17, 2025, in New York City. (Spencer Platt/Getty Images)
“Donald Trump’s revenge tour on New York threatens to derail one of the most vital infrastructure projects this nation has built in generations, putting thousands of union jobs and billions of dollars in economic benefits in jeopardy and threatening the commutes of 200,000 riders,” New York Gov. Kathy Hochul said in a statement.
She said New York “will fight this illegal effort by the Trump Administration to steal the funding the federal government committed to get the Gateway Tunnel built with everything we’ve got.”
“My message to Donald Trump and Sean Duffy is simple: we’ll see you in court.”
Fox News Digital has reached out to the White House and the Department of Transportation for comment.
DEMOCRAT AGS SUE TRUMP FOR ‘UNCONSCIONABLE’ FREEZE ON $6.8B IN K-12 SPENDING
The Trump administration is facing a lawsuit from New York and New Jersey over frozen federal funding for the Hudson River tunnel, drawing sharp criticism from Gov. Kathy Hochul. (Left: Anna Moneymaker/Getty Images; Right: Victor J. Blue/Bloomberg via Getty Images)
The large-scale project would create new tunnels and rehabilitate an existing Hudson River rail crossing connecting northern New Jersey and New York City.
The overhaul is considered necessary because the existing rail tunnels are more than 115 years old and suffered severe damage from saltwater flooding during Hurricane Sandy in 2012. The tunnels carry about 70,000 New Jersey commuters daily, and Amtrak has warned that failure of one tunnel could cut rail traffic into New York City by up to 75%.
The project has been under construction for more than a year, but the Trump administration put a hold on federal funding in September, citing the government shutdown — a move the two states argue is “jeopardizing the economic future of the Northeast region.”
ZOHRAN MAMDANI VOWS TO FIGHT BACK AGAINST TRUMP’S THREAT TO WITHHOLD FEDERAL FUNDING FOR NYC
“Every time the Trump Administration gets involved, costs go up and working people suffer. The illegal attack on the Gateway Tunnel is yet another example,” New Jersey Gov. Mikie Sherrill said in a statement. “New Jersey will not back down from this fight. If this project stops, 1,000 workers will immediately lose their jobs and hundreds of thousands of commuters will lose the chance at finally having reliable train service that makes their lives easier.”
New York Attorney General Letitia James added in a statement posted on X that stopping the Gateway project “would cost thousands of good-paying jobs and put one of the country’s most heavily used transit corridors at risk.”
Jennifer Davenport, New Jersey’s acting attorney general, delivered a blunt message to the Trump administration.
DUFFY THREATENS TO YANK NEW YORK FEDERAL FUNDS OVER ILLEGALLY ISSUED COMMERCIAL DRIVER’S LICENSES
Workers at a construction site for the Gateway Program’s Hudson Tunnel Project in New York City on Oct. 3, 2025. (Anna Moneymaker/Getty Images)
“Our promise to our residents is clear: we will protect them from attacks on their rights and on their pocketbooks, whatever the source,” she said.
“The President’s decision to freeze funding for the Hudson Tunnel Project jeopardizes safe and reliable infrastructure and puts thousands of jobs at risk,” she added. “The Federal Government has left us no choice: we must challenge this illegal action in court, and demand emergency relief that will protect us from these unlawful harms.”
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A separate lawsuit over tunnel funding was filed Monday against the federal government by the Gateway Development Commission, which oversees the project.
Fox News Digital’s Michael Dorgan and The Associated Press contributed to this story.
Politics
Coalition of 25 states sues Trump admin over Medicaid work rule designed to prevent fraud
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A coalition of blue states and jurisdictions is suing the Trump administration over new Medicaid work requirements designed to prevent fraud, arguing the policy unlawfully restricts access to health care coverage.
The lawsuit, filed by at least 25 states and the District of Columbia, alleges the newly implemented Interim Final Rule (IFR) — issued by the Centers for Medicare & Medicaid Services (CMS) — violates federal law and departs from Congress’ original intent and early CMS guidance.
The IFR requires certain individuals to provide documentation proving they are exempt from Medicaid rules requiring enrollees to work, volunteer or attend school due to severe medical conditions.
Before the rule was issued in early June, highly vulnerable Medicaid recipients were set to be automatically exempt from such requirements. Agencies would have granted those exemptions by reviewing existing health records, without requiring individuals to complete additional paperwork ahead of the requirements taking effect in January 2027.
DR. OZ UNVEILS MEDICAID OVERHAUL, CLAMPS DOWN ON $2B FOR ILLEGAL IMMIGRANTS AND MANDATES WORK FOR ABLE-BODIED
Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, discussed a number of healthcare topics during a news conference with reporters on Tuesday, June 2, 2026. (Aaron Schwartz/CNP/Bloomberg via Getty Images)
The lawsuit names Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), which issued the IFR, and Robert F. Kennedy Jr., secretary of Health and Human Services (HHS), as defendants.
Oz previously argued that such guardrails are designed to prevent programs from being “defrauded into a turmoil,” adding that able-bodied enrollees receiving American tax dollars should contribute to society.
“If you can work, you should get up and work,” Oz said.
“If we put guardrails around these programs, we’ll allow them to thrive. I’m here because I love Medicaid. The president has already said he loves and cherishes Medicaid and Medicare. … We cannot allow these programs to be defrauded into a turmoil that they cannot pull up from. If we love these programs, we will make the difficult decisions.”
The new rule would require able-bodied individuals to work 20 hours a week, volunteer, or pursue education while enrolled in free healthcare coverage.
Fox News reached out to the White House and HHS for comment.
FED AUDIT, EMERGENCY MEDICAID UNDERCUT DEMS ON ILLEGAL IMMIGRANT HEALTH COVERAGE
Health and Human Services Secretary Robert F. Kennedy Jr. speaks during an interview. ((Photo by Jason Mendez/Getty Images))
The plaintiffs involve California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Arizona, Colorado, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Pennsylvania, Virginia, Wisconsin and Kentucky.
“People with disabilities, patients in the middle of cancer treatment, or those struggling with another serious or complex health condition, shouldn’t be at risk of losing the care that helps maintain their health,” the suit stated.
REPUBLICANS PRAISE ‘BIG, BEAUTIFUL BILL’S’ WORK REQUIREMENT FOR MEDICAID: ‘WE’VE GOT TO GET BACK TO WORK’
According to the suit, CMS’s own projections estimate that 2.3 million enrollees will lose Medicaid coverage in the first year alone.
The agency also estimates that 7% of enrollees who are working or qualify for an exemption will lose coverage due to confusing paperwork requirements, strict deadlines or missing documentation, according to the document.
Beginning in 2028, enrollees who do not have immediate medical records on file would be limited to a single opportunity to submit a “self-attestation” form declaring, under penalty of perjury, that they are too sick to work.
Under previous guidance, enrollees were allowed to use self-attestation multiple times as their medical needs evolved.
An examination bed sits inside a medical clinic. (AP Photo/Matt York)
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In addition, plaintiffs said the new rules would force states to abandon automated systems they have already invested in and instead build more complex and costly manual review processes.
As the Aug. 31 deadline to mail notices to Medicaid enrollees approaches, the plaintiffs are seeking a temporary stay and a preliminary injunction to block CMS and HHS from enforcing the rules.
Politics
Bill to ban sex offenders from running for office fails in California senate committee
California Democratic senators failed to advance a proposal Tuesday that would have barred registered sex offenders from running for office.
State Sen. Scott Wiener (D-San Francisco) voted against Assembly Bill 2753, while fellow Sens. Tom Umberg (D-Santa Ana) and Ben Allen (D-Santa Monica) abstained from a vote that ultimately failed 2-1-2 in the Senate Elections and Constitutional Committee.
The committee’s lone Republican, Steve Choi (R-Irvine), and Sen. Sabrina Cervantes (D-Riverside) voted in favor of the bill, which is likely dead because it failed to get support from a majority of the five-member panel.
AB 2753 could be reviewed in a floor session Thursday, but staff from the office of Assemblywoman Esmeralda Soria (D-Fresno), who authored the bill, are conceding that’s unlikely.
The defeat comes on the heels of unanimous support, including a 60-0 vote in favor on the Assembly Floor on May 7.
“I am deeply disappointed and disheartened after the Senate Elections Committee has failed to advance AB 2753, a bill that would have prohibited any registered sex offender in the State of California from running for local or state public office,” Soria said in a statement.
The bill’s wording said the legislation would “prohibit a person from being a candidate for, or elected to, any state or local elective office if the person has ever been required to register as a sex offender.”
Inquiries to the offices of Sens. Wiener, Umberg and Allen were not immediately returned.
Sex offenses in California are broken up into three tiers. First-tier offenses call for a minimum of 10 years placement on the sex offender registry. Second-tier offenses call for a minimum of 20 years and third tier crimes could result in a lifetime on the registry.
The types of offenses for each tier vary. Tier 1 offenses range from indecent exposure to misdemeanor child pornography and sexual battery. Tier 2 includes incest and penetration with a foreign object, and Tier 3 includes felony possession of child pornography, rape and pimping and pandering of a minor.
Wiener asked for amendments to the bill during the bill’s review and in the committee meeting, including that the lifetime ban only be applied to Tier 3 members.
He pointed to committee analysis of the bill that could affect so-called “Romeo and Juliet” couples — those close in age, for instance with one partner being 19 and the other being 17. If the younger partner sent sexually explicit digital content to the older partner (a misdemeanor), this law could ban the older partner from public office for life.
There were also concerns listed in the analysis that the registry, which dates back to 1947, could include LGBTQ+ offenders from decades ago who were convicted of offenses that are no longer crimes.
Wiener mentioned in the committee meeting civil rights strategist and fighter Bayard Rustin being placed on the California sex offender’s registry list after being arrested by Pasadena Police for having consensual sex with another man in 1953.
“Without the amendment contained in the analysis, I will be voting ‘no’ on this bill and recommending that the committee vote ‘no,’” Wiener said at the committee hearing.
He added that the sex offender list was “not punishment,” but instead “a tool for law enforcement to monitor who may potentially cause a risk.”
While Soria agreed to one bill amendment, she did not accept other provisions, including the elimination of lifetime bans on Tier 1 or 2 offenses.
“The bottom line is this: I was not willing to make additional amendments to this bill,” she said. “I made a promise to my community that I would do everything in my power to ensure they would never have to go through something like this again. Accepting additional amendments to this bill would have jeopardized that promise.”
Some of the impetus behind her bill revolved around the June 2 Fresno City Council election. Registered sex offender Rene Campos fell short of the necessary votes in his bid to run for Central Valley Council.
He was charged with possession of child pornography in 2018 and hosted his campaign kickoff in front of an elementary school.
Nelson Esparza, Fresno City Council President, spoke at the Senate Elections and Constitutional Committee meeting in favor of AB 2753.
“My office received dozens of calls from our residents asking how this could be allowed,” Esparza said of Campos’ candidacy. “AB 2753 closes this loophole.”
It’s unclear if this bill will be reintroduced next year at least at the Assembly level, as Soria is running for the state senate in November.
Politics
Mamdani ripped for claiming victory over capitalism after NYC’s multi-billion dollar taxpayer funded bailout
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New York City’s mayor is again under fire after spewing outlandish claims that his socialist policies are to credit for a balanced budget in the Big Apple, just after the city received a multi-billion dollar bailout from the state.
“In January, our administration inherited a $12 billion budget deficit — a fiscal crisis greater than the Great Recession,” Mayor Zohran Mamdani said in a Tuesday post on X announcing that the debt had been cleared.
“We balanced the budget by taxing the rich and making government more efficient,” Mamdani continued. “We did not balance this budget on the backs of working people, and we never will.”
New York City Mayor Zohran Mamdani speaks during a primary-night watch party for NYC Congressional candidate Claire Valdez at 99 Scott Studio on June 23, 2026 in the East Williamsburg neighborhood of the Brooklyn borough in New York City. (Michael M. Santiago/Getty Images)
MAMDANI ALLOCATES $500K FOR REPARATIONS TALKS AS NYC FACES $5.4B DEFICIT
But the real reason the budget it balanced is because the city was handed $1.5 billion by the state of New York in January — funded by working class taxpayers across the state — as part of a multi-year plan to bail out the fiscally-challenged city. In late May, the city received another $4 billion.
Of the combined $8 billion provided to the city’s bailout fund under former Mayor Eric Adams’ tenure and now Mamdani’s mayorship, $5 billion was directly earmarked for the city to address fiscal measures. This includes allowing city government to defer pension contributions to close the budgetary gap.
Mamdani’s claims about socialist policies producing results — and his failure to mention the massive bailouts provided by taxpayer dollars — did not fly on social media.
New York Gov. Kathy Hochul holds media availability press conference and makes an announcement on abortion rights at the office on 633 3rd Avenue. (Lev Radin/Pacific Press/LightRocket via Getty Images)
MAMDANI ALLOCATES $500K FOR REPARATIONS TALKS AS NYC FACES $5.4B DEFICIT
“This is a lie,” independent journalist Nick Shirley said in a reply to the mayor.
“You balanced the budget by borrowing billions from the NY state government which pushed back pension payments, so you literally took money from ‘the backs of hardworking people.’ Don’t get it twisted,” he added.
Commentator and journalist Nick Sortor also flamed the mayor over the loan and his classification of the bailout.
“Are you saying New Yorkers can ‘balance their budgets’ by taking out massive credit card loans?” he asked sarcastically.
Independent journalist Nick Shirley sat down for an interview with Riley Gaines as part of the launch of Outkick’s “The Riley Gaines Show.” (OutKick)
BROADCAST NETWORKS TOUT MAMDANI’S VICTORIES, PROCLAIM SOCIALISM IS ‘RESONATING’
“Mamdani balanced the budget by taking money from Albany, who in turn taxed Rochester and Buffalo” another social media user said. “That’s who is paying for all of Mamdani’s free crap.”
In a press conference earlier in the day, Mamdani claimed victory over capitalism.
“Throughout this process I have been reminded of the words of the Austrian economist Friedrich Hayek: ‘if socialists understood economics, they wouldn’t be socialists.’”
A man sleeps on the E train, one of the subway lines most utilized by homeless New Yorkers for shelter, in Queens, New York, on Monday, April 7, 2025. (Victor J. Blue for The Washington Post/Getty Images)
After the Republican National Convention (RNC) posted that clip, Mamdani also faced ridicule for that.
“It always looks good at first until the chickens come home to roost,” one person replied.
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“He’ll soon ‘deliver’ bread lines instead,” said another.
Mamdani’s office did not return Fox News Digital’s request for comment.
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