Trump admin. to release funding for Gateway Tunnel Project
NEW YORK - Federal officials are expected to release millions in funding for the Gateway Tunnel project by Thursday afternoon after a federal court ordered the money be restored.
What we know:
New Jersey Gov. Mikie Sherrill said the ruling from the 2nd U.S. Circuit Court of Appeals requires the funds to be released immediately and will allow construction to resume on the long-delayed rail project beneath the Hudson River.
"It’s time — I would actually say it’s way past time — that the president releases the Gateway Tunnel funds," Sherrill said. "He’s illegally stopped them, the courts have spoken, and now it’s time for people to get back to work."
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
Why you should care:
State officials said about 1,000 construction workers have been sidelined as the project remained in legal limbo.
The funding had been withheld by the Trump administration, which is now expected to comply with the court’s order by 1 p.m., according to officials at the briefing.
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 Project calls for building a new rail tunnel under the Hudson River to carry Amtrak and NJ Transit trains between New Jersey and New York City. It also includes repairs to the existing 116-year-old tunnel, which was damaged during Superstorm Sandy in 2012.
What is the Gateway Tunnel Project?
Work on the project began in 2023, and roughly $1 billion has already been spent. Officials have warned that without the federal funds, construction would halt, jobs would be lost and rail service for hundreds of thousands of commuters could be disrupted.
The Trump administration froze the funding in September, initially citing last fall’s government shutdown. At the time, White House budget director Russ Vought wrote on X that officials believed the spending was tied to unconstitutional diversity, equity and inclusion policies. The U.S. Department of Transportation said it was reviewing any "unconstitutional practices."
The funding was approved by Congress under the 2021 infrastructure law signed by then-President Joe Biden.
Why did Trump freeze funding?
Gateway commission sues Trump admin. over project funding
New York and New Jersey sued the Trump administration on Tuesday for freezing $16 billion in federal funding for a new rail tunnel under the Hudson River. FOX 5 NY's Jessica Formoso has the details.
In a lawsuit filed last week, New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport argued the funding freeze was unlawful and violated federal obligations. They asked a judge to order payments to resume immediately.
State officials have said halting construction could cost the region up to $100 million per day in economic activity and warned that disruptions would ripple across the Northeast, which accounts for roughly 20% of the nation’s gross domestic product.
About 200,000 passengers rely daily on Amtrak and NJ Transit service that would be supported by the new tunnels, according to officials.
The Source: This report is based on information from NJ Gov. Mikie Sherrill and the Associated Press.