It's worth pointing out that the link in the original post says, "Transportation officials in Trump’s administration say the project is ineligible for federal funding because New York and New Jersey haven’t committed enough local money." New Jersey Transit is a far larger user of the tunnels and Penn Station than Amtrak. NJT is a political creature in NJ because it keeps the cost of commuting to New York jobs low. The tunnels are a boon to New York, because New Jersey residents who work in New York pay New York income tax. I would say the federal government is entitled to negotiate for better terms here, especially when both NY and NJ are blue states.