This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
2/6/2026
Construction of the Hudson Tunnel project will be suspended at 5 p.m. Eastern time today because disbursements of federal funding obligated to the project remain paused, the Gateway Development Commission announced.
Four major procurements that comprise the remaining construction packages for the project also will be on hold until funding is restored, Gateway officials said in a press release. The commission oversees the project.
The Trump administration has suspended the release of the federal government's contractually obligated funds since Oct. 1, 2025.
The $16 billion project entails constructing and rehabilitating rail tunnel infrastructure under the Hudson River between New York City and New Jersey. The tunnel project is a key component of the Gateway program to improve rail transportation in the Northeast Corridor. The majority of the project's budget is funded by federal grants and loans.
Pausing construction results in the immediate loss of nearly 1,000 jobs. An extended pause would put at risk 11,000 construction jobs on the current projects, as well as the 95,000 jobs and $19.6 billion in economic activity that construction is anticipated to generate overall, commission officials said.
On Monday, the commission sued the federal government in the U.S. Court of Federal Claims seeking judgment that would release contractually obligated grant and loan funds.
The existing 110-year-old tunnels carry over 200,000 daily passenger trips between New York City and New Jersey every weekday, according to the Rail Passengers Association.