Gateway Tunnel Construction Resumes After Judge Orders $235 Million Release

Updated 2026-02-19 14:46:26+00:00 (4 articles)

Image: Newsweek

Construction continues on the Hudson Gateway Tunnel project to connect New Jersey to Penn Station on October 17, 2025 in New York City. Source Full size
Image: Newsweek

Construction continues on the Hudson Gateway Tunnel project to connect New Jersey to Penn Station on October 17, 2025 in New York City. Source Full size

Federal Judge Unlocks $235 Million for Project U.S. district judge issued an order on Feb 6 directing the administration to disburse roughly $235 million in installments, ending the funding freeze that had halted work on the $16 billion Gateway rail tunnel [1]. The order specifically targeted the $98 million still owed to the project and an additional $30 million earmarked for work completed in January [1]. This decision restores the primary cash flow needed to keep the tunnel’s schedule on track [1].

Staggered Disbursements Begin Mid‑February New York officials reported that the first $30 million tranche arrived on Feb 13, followed by $77 million earlier in the week and a final payout scheduled later in the same period [1]. Governor Kathy Hochul announced the releases, emphasizing that the $30 million reimbursement covers work already performed in January [1]. The staggered approach is intended to ensure continuous contractor payments while the federal agency processes the remaining funds [1].

Construction Pause Ends, Work Set to Restart The funding restoration allows contractors to receive letters authorizing the resumption of construction, effectively ending the pause that began on Feb 6 when the money ran out [1]. Officials expect crews to be back on site within the next week, accelerating progress on the Hudson River tunnel segment [1]. The restart is critical to meeting the broader timeline for the Gateway program’s capacity upgrades [1].

Project’s Strategic Role and Funding Mix Highlighted The Hudson River tunnel, part of the Northeast Corridor, serves over 200,000 daily commuters, and the Gateway program aims to add capacity and repair damage from Hurricane Sandy [1]. Financing combines federal contributions, state funds from New York and New Jersey, and more than $1 billion pledged by Amtrak [1]. The renewed cash flow reinforces the multi‑jurisdictional commitment to completing the critical infrastructure link [1].

Sources

1.
Newsweek: New York‑New Jersey Gateway Tunnel Project Resumes After Federal Funds Released: Reports that a Feb 6 judicial order unlocked $235 million, detailing the $98 million and $30 million reimbursements, staggered payouts, the end of the construction pause, and the tunnel’s importance for 200,000 daily riders, with a focus on the funding mix involving federal, state, and Amtrak contributions .
2026-02-19 14:46:26+00:00

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Timeline

Sept 2025 – The Trump administration pauses $16 billion of Gateway tunnel funding during the September government shutdown, linking the hold to a review of “unconstitutional diversity, equity and inclusion principles” and sparking concerns about the project’s financing [4].

Oct 2012 – Hurricane Sandy damages the existing Hudson River rail tunnels, creating the long‑term need for a new high‑capacity Gateway tunnel to restore and expand Northeast Corridor service [2].

Early Feb 2026 (≈Feb 5) – President Trump tells Senate Minority Leader Chuck Schumer he will lift the funding freeze if New York’s Penn Station and Washington’s Dulles Airport are renamed after him; Schumer replies he lacks the authority to make such changes and rejects the proposal [1][3][4].

Early Feb 2026 (≈Feb 5) – New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport file a federal lawsuit demanding an immediate end to the freeze, arguing the suspension is unlawful and threatens the tunnel’s schedule [3][4].

Early Feb 2026 (≈Feb 5) – The funding freeze is set to run out on Friday, risking a shutdown of construction and the loss of roughly 1,000 jobs if the $16 billion allocation is not released [1][3].

Feb 6, 2026 – A federal judge orders the administration to disburse about $235 million in installments, unlocking the first $98 million plus $30 million in reimbursements and ending the work stoppage [2].

Feb 6, 2026 – White House budget director Russ Vought posts on X that officials believe the suspended spending violates “unconstitutional diversity, equity and inclusion principles,” reinforcing the administration’s justification for the freeze [3].

Feb 13, 2026 – Governor Kathy Hochul announces the release of a $30 million tranche, following an earlier $77 million payout and confirming a final tranche will arrive later in the week [2].

Mid‑Feb 2026 (≈Feb 20) – With funds restored, contractors receive letters to resume construction; the Gateway tunnel work, paused since early February, is slated to restart the following week [2].

Ongoing – The Gateway tunnel, critical for the 200,000 daily commuters on the Northeast Corridor, proceeds with a financing mix of federal, state and Amtrak contributions (Amtrak pledges >$1 billion) [2].

Ongoing – President Trump’s broader personal‑branding push includes the Trump Gold Card, TrumpRx prescription site, and a proposed Trump‑class battleship, illustrating his pattern of attaching his name to federal initiatives [1].

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