Gateway Tunnel Scandal: Ethics Concerns Erupt Over Board Member’s $2M Link to Major Contractor
the staff of the Ridgewood blog
NEW YORK/NEW JERSEY — The massive $16 billion Hudson River rail tunnel project is facing a crisis of public trust. A high-ranking board member of the agency overseeing the project is under fire after voting to award a historic contract to a firm where she held a multi-million dollar financial stake—and where she was rehired just months later.
The revelations surrounding Jamey Barbas, a New York representative on the Gateway Development Commission (GDC), have prompted ethics experts to warn of a “corrosive effect” on government transparency.
The Timeline: A “Revolving Door” Conflict?
The controversy centers on the MPA Delivery Partners contract—the most consequential in Gateway’s history. MPA is a joint venture that includes Parsons Corp., a firm with deep ties to Barbas.
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February 2024: Barbas votes “Yes” as part of a unanimous board decision to award the project delivery contract to MPA (Parsons). At the time, she held an employee stock plan in Parsons valued between $1 million and $2.25 million.
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April 2024: Barbas informs Gateway counsel she plans to interview for a job at Parsons. She begins recusing herself from Parsons-related matters.
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September 2024: Barbas is officially rehired by Parsons Corp. as a senior project manager.
While Gateway officials insist Barbas followed all internal policies, the optics of a board member voting on a multi-million dollar award for a future employer have sparked outrage.
The “Stock” Defense: A Loophole in the Rules?
GDC spokesman Stephen Sigmund defended the vote, stating that Barbas’ million-dollar stock ownership did not qualify as a “financial interest” under the agency’s specific code of ethics.
The Gateway Loophole: According to GDC policy, an “interest” only exists if a member controls 10% or more of a corporation’s stock. Because Barbas’ $2 million stake didn’t hit that percentage threshold in the massive Parsons Corp., the agency ruled she was in compliance.
However, ethics investigators like Dylan Hedtler-Gaudette of the Project on Government Oversight argue that the appearance of impropriety is just as damaging as a technical violation. “It can have a really corrosive effect on trust between people and the government,” he noted.
Why This Contract Matters to Taxpayers
The Gateway project is a 15-year effort to build a new two-track tunnel and repair the aging 116-year-old existing tubes. MPA (Parsons) acts as the “arms and legs” of the project, providing the engineers and project managers to run the show.
The Red Flags:
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Ballooning Costs: Since MPA won the award, 27 change orders have already been approved, pushing the contract value up by tens of millions of dollars.
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Delayed Deadlines: Key tasks have already seen their deadlines pushed back.
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The “Big Dig” Fear: Experts point to Boston’s “Big Dig” as a warning of what happens when oversight boards and delivery partners become too cozy, leading to billions in cost overruns.
Can Barbas Still Serve Effectively?
With Barbas now recused from all matters involving Parsons—the firm managing the bulk of the $16 billion project—critics question her continued value on the seven-person board.
“If Parsons is a large part of the commission’s business, I would question her ability to be effective,” said Archon Fung, a professor at the Harvard Kennedy School. If a commissioner cannot vote on the project’s most vital contracts, their seat effectively remains empty during the most important debates.
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These coincidences are just a coincidence.
Corruption in New Jersey ?
No way!