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2/25/2026
The Gateway Development Commission (GDC) will resume construction on the $16 billion Hudson Tunnel project this week, after the commission paused construction work on Feb. 6 in response to the Trump administration's October 2025 freeze on previously awarded federal funding.
Most of the project's funding comes from federal grants or loans. The commission and New York and New Jersey officials sued the federal government for halting the project's funding and won. On Feb. 13, the Trump administration said the funding would begin to flow again.
The resumed work will be funded with $235 million the commission received from the federal government earlier this month, commission officials said. Crews will resume preparation for the launch of the first tunnel boring machine, which will bore a new passenger-rail tunnel underneath the Hudson River between New York City and New Jersey.
Although work on active construction projects is resuming, the awarding of two major procurement contracts has been delayed until GDC has full access to all $15 billion in federal grants and loans. Both contracts were scheduled to be awarded in late 2025 or early 2026, GDC officials said.
The Hudson Tunnel project calls for constructing and rehabilitating rail tunnel infrastructure under the Hudson River. The existing 110-year-old tunnel carries over 200,000 daily passenger trips between New York City and New Jersey every weekday, according to the Rail Passengers Association.