Gateway Tunnel Project to resume after $127M funding release
More funding for Gateway Tunnel Project to be released soon Schumer says
Schumer says construction should resume in the next few days.
NEW JERSEY - Federal funding for the long-delayed and politically contentious Gateway Tunnel Project has been restored, officials said Wednesday, clearing the way for construction to resume.
What we know:
New York Gov. Kathy Hochul said President Trump's administration released the remaining $127 million in overdue funds following a preliminary court ruling.
"Following our preliminary court victory and my conversation with the President, the Trump Administration has released the remaining $127 million in overdue Gateway Tunnel funding," Hochul wrote on X.
"We’ll keep fighting to ensure the federal government meets its commitments," she added.
The latest disbursement includes all of December’s funding and part of January’s, more than officials had anticipated.
Why did Trump freeze funding?
The backstory:
Last week, a federal court ordered the Trump administration to resume $205 million in payments that had been frozen in October.
When the full amount was not immediately delivered, Hochul publicly urged President Trump to release the remaining funds without delay.
Hochul said construction is expected to resume next week, calling the funding restoration a major win for workers and commuters.
NEW YORK, NEW YORK - OCTOBER 17: Construction continues on the Hudson Gateway Tunnel project to connect New Jersey to Penn Station on October 17, 2025 in New York City. President Donald Trump recently said he "terminated" the $16 billion Hudson River
‘Workers will be coming back work’
"Gateway’s the most important public works project, infrastructure project in America right now," Schumer said. "It’s the largest, it’s employing the most people, and it’s the most essential, ’cause if those tunnels under the Hudson River collapse, the whole Northeastern economy collapses."
In a post on Truth Social on Monday, Trump criticized the project and said the federal government would not cover any cost overruns. There are currently no reported cost overruns.
What is the Gateway Tunnel Project?
NEW YORK, NEW YORK - OCTOBER 17: Construction continues on the Hudson Gateway Tunnel project to connect New Jersey to Penn Station on October 17, 2025 in New York City. President Donald Trump recently said he "terminated" the $16 billion Hudson River
The Gateway Tunnel Project is a multibillion-dollar plan to build two new rail tunnels under the Hudson River between New York and New Jersey and to rehabilitate the existing, century-old tunnels damaged by Superstorm Sandy. The project is considered critical to the Northeast Corridor, the nation’s busiest rail line, which serves hundreds of thousands of daily commuters and connects major economic hubs from Washington to Boston.
Officials have warned that without the new tunnels, a failure of the aging infrastructure could severely disrupt rail service and the broader regional economy.
The Source: This report is based on information from Senator Chuch Schumer.