United States Trust Co. v. New Jersey

New York and New Jersey had enacted 1962 statutes restricting the use of Port Authority toll revenue to subsidize rail passenger service, assuring bondholders that toll funds would remain available to pay their debt, but in 1974 amid the energy crisis both states repealed that restriction to allow toll revenue to fund rail transit improvements, prompting a bondholder suit alleging the repeal unconstitutionally impaired the states' contractual obligation.