Construction on the Gateway project, a new Hudson River train tunnel linking New York and New Jersey, is on the verge of halting.
This is because federal funding has been frozen for months, making it impossible to continue construction. According to the Gateway Development Board, which oversees the new Hudson River train tunnel, contractors have already been notified that construction must halt completely as of February 6th unless new funding is secured. The Trump administration has withheld federal funding for the project for nearly four months, dating back to October of last year.
The Department of Transportation has declared a funding freeze pending a review of new federal rules prohibiting consideration of race or gender in the selection of contractors for the Gateway project. In addition, President Trump blamed Senate Democratic Leader Charles Schumer for the federal government shutdown last October.
Following President Trump’s remarks, Transportation Secretary Sean Duffy stated that a review of the project was underway, but funding has yet to resume. With federal funding freezing, the Gateway Development Board secured a $500 million credit line to continue construction but has now reached its limit. The current Hudson River Tunnel, the sole rail passage between New York and New Jersey, is 116 years old and suffering from serious aging issues.
The need for a new train tunnel, the Gateway Project, has long been emphasized, and construction finally began in 2023 and is currently underway. However, without $11 billion in federal support, which accounts for approximately 70% of the total $16 billion project cost, it is virtually impossible to complete.
In this regard, Senate Majority Leader Schumer and other Democratic lawmakers from New York and New Jersey sent a letter to the Trump administration on the 28th, strongly urging the swift release of federal funds allocated to the Gateway Project.