The future of the Gateway Project, a lifeline linking New York and New Jersey, appears to hinge on what happens in Washington.
The Gateway Project relies on billions in federal funding to replace the aging Hudson River tunnel, a key link for Amtrak and New Jersey Transit trains.
Now, President Trump says he’s going to “terminate” funding for the project.
Preliminary work continued Thursday on the Gateway Tunnel Project while officials debated the effect of Mr. Trump’s vow to kill it.
Mr. Trump is attacking an undertaking that has been synonymous with Senate Minority Leader Chuck Schumer amid the fight over the government shutdown. Some might call it Schumer’s Achilles heel.
“Tell him it’s terminated”
Schumer is not backing down. Thursday, the Senate failed for the 10th time to pass a GOP-led funding bill.
“If Donald Trump thinks he can use New Yorkers, New Jerseyites, commuters, small businesses, union construction workers and the first responders as political pawns, it will backfire on him spectacularly,” Schumer said.
Schumer’s fighting words vow an all-out effort to combat Trump’s decision. The president made it personal, apparently remembering the epic 2018 fight when Schumer refused to give him $5 billion for a border wall in exchange for Gateway funding.
“This is not only jobs. I mean, the project in Manhattan, the project in New York. It’s billions and billions of dollars that Schumer has worked 20 years to get. It’s terminated. Tell him it’s terminated,” Mr. Trump said.
Impact on jobs and economy
Michael Nagle / Bloomberg via Getty Images
Sources tell CBS News New York that Schumer hopes to get Mr. Trump to back down by mobilizing key labor unions to make their voices and outrage heard in the Oval Office.
The unions and the local and national economies have a lot to lose. Locally, the $19 billion Hudson Tunnel project is expected to create 72,000 jobs. The Portal Bridge project is expected to create another 11,600.
Nationally, a shutdown would cause a $16 billion hit to the country’s economy over a four-year period, according to the Regional Plan Association. Longer term, it could generate $445 billion in losses through 2060. A shutdown could also cause a loss of $7 billion in taxes to federal, state and local governments.
“Pure spite and … sheer stupidity”
“Donald Trump is trying to kill it again in pure spite and with sheer stupidity. It’s petty revenge politics. And who gets hurt? It’s going to screw over hundreds of thousands of New York and New Jersey commuters, choke off our economy, kill good-paying jobs,” Schumer said.
Michael Nagle / Bloomberg via Getty Images 
Experts say Mr. Trump’s decision to use Gateway as a “carrot” to get Schumer and House Minority Leader Hakeem Jeffries back to the negotiating table on the government shutdown is good politics that leaves Schumer vulnerable.
“President Trump is going to blame Senator Schumer and Hakeem Jeffries and Mikie Sherrill in New Jersey, making them totally responsible for this. There is zero political consequence for President Trump in making this decision. Zero. There’s no one in his base is gonna be affected by this, but it will affect the Tri-State. So they have to come to the table and negotiate now because President Trump would take this all the way to next year,” said J.C. Polanco, assistant professor at University of Mount Saint Vincent.
Gov. Kathy Hochul said she’s going to try to talk the president into changing his mind about Gateway.
Impact on N.J. governor’s race
Polanco said Mr. Trump could also be trying to put his finger on the scale in the tightening race for the New Jersey statehouse.
“It’s a huge impact on the New Jersey governor’s race,” Polanco said.
A recent Quinnipiac University poll has Sherrill, a Democrat, with 50% and Republican Jack Ciattarelli with 44%. The margin of error is 3.6%.
Associated Press 
Both candidates are trying to cast themselves as the one to save the day.
“New Jersey needs a Governor who has the standing to work with, and when necessary disagree with, the President and advocate for New Jersey’s fair share of federal tax dollars – including the Gateway Tunnel. This is a critical infrastructure project and I will fight to get it done,” Ciattarelli posted on social media.
Sherrill pooh-poohed that.
“I mean, that’s rich, right, because here’s somebody who’s tried to excuse it, in every turn, not ’til I’ve held him accountable and his back’s basically to the wall that he gives this kind of milquetoast, oh, yeah, I’ll fight for it. In what way? In what way is he going to fight for?” Sherrill said.
Polanco said Ciattarelli has more to gain.
“Jack Cittarelli is going to be able to seem as a mediator who is able to get things done with the White House, if he’s able to negotiate,” Polanco said.
Ciattarelli can also blame Sherrill for voting for the shutdown.
“It’s win-win-win for Jack Cattarelli. And it’s a cause for concern for Congresswoman Sherrill. And the president knows exactly what he’s doing. Look, Jack Cittarelli is in a position right now where you have President Trump, that is, that could put him in a position of being a kingmaker,” Polanco said.
