Work Suspended on $16 Billion NYC Tunnel Project

Trump administration refuses to lift funding freeze, endangering critical rail infrastructure

Feb. 6, 2026 at 6:07pm

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Work on the $16 billion New York City Hudson Tunnel Project will be suspended on Friday at 5 p.m. ET due to the Trump administration's refusal to lift a four-month-old freeze on federal funding for the project. The project aims to repair an existing rail tunnel and build a new one under the Hudson River, which is a critical transportation link between New York and New Jersey. Trump has demanded that Washington Dulles Airport and New York's Penn Station be renamed for him in exchange for unfreezing the funding, a move condemned by Democrats.

Why it matters

The Hudson Tunnel Project is a vital infrastructure project for the New York metropolitan area, which produces 10% of the U.S. economic output and is used by over 200,000 travelers and 425 trains daily. Any failure of the existing 110-year-old tunnel, which was damaged by Hurricane Sandy in 2012, would severely disrupt commuting and travel in the region.

The details

The suspension of work will idle 1,000 construction workers, and the Trump administration's decision has endangered passengers who rely on the 'decaying, century-old rail infrastructure.' The Transportation Department has withheld $205 million in reimbursements for the project since October 1. A U.S. judge will hold a hearing on Friday on an emergency request by New York and New Jersey to force the restoration of funding.

  • Work on the project will be suspended at 5 p.m. ET (2200 GMT) on Friday, February 6, 2026.
  • The Transportation Department has withheld $205 million in reimbursements for the project since October 1, 2025.

The players

Gateway Development Commission

The organization overseeing the Hudson Tunnel Project.

Donald Trump

The former president of the United States who has demanded that Washington Dulles Airport and New York's Penn Station be renamed for him in exchange for unfreezing funding for the project.

Chuck Schumer

The Democratic senator from New York who told the White House he did not have the power to rename Washington Dulles Airport and Penn Station.

Cory Booker

The Democratic senator from New Jersey who criticized Trump for holding the tunnel project hostage.

Kirsten Gillibrand

The Democratic senator from New York who called Trump's suggestion to rename the buildings 'ridiculous.'

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What they’re saying

“These naming rights aren't tradable as part of any negotiations, and neither is the dignity of New Yorkers… The president continues to put his own narcissism over the good-paying union jobs this project provides and the extraordinary economic impact the Gateway tunnel will bring.”

— Kirsten Gillibrand, U.S. Senator (Reuters)

“Trump is holding the tunnel hostage because he seems to want to put his name on everything.”

— Cory Booker, U.S. Senator (Reuters)

What’s next

A U.S. judge will hold a hearing on Friday on an emergency request by New York and New Jersey to force the restoration of funding for the Hudson Tunnel Project.

The takeaway

The suspension of work on the critical Hudson Tunnel Project highlights the political tensions surrounding infrastructure funding and the Trump administration's willingness to leverage major projects for personal gain. This situation underscores the need for bipartisan cooperation and a focus on the public good when it comes to investing in the nation's crumbling transportation networks.