New Jersey Governor Slams Trump's Freeze on Gateway Tunnel Funding

Sherrill calls the move an 'illegal attack' that threatens jobs and economic activity in the region

Jan. 27, 2026 at 4:07pm

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New Jersey Governor Mikie Sherrill has strongly condemned President Donald Trump's decision to freeze federal funding for the $16 billion Gateway Tunnel project, a critical rail infrastructure effort linking New Jersey and New York City. Sherrill, a Democrat, called the funding freeze an 'illegal attack on New Jersey' that shows a 'reckless disregard' for the state's economy and working families. She warned that the project's suspension could cost nearly 100,000 jobs and $20 billion in economic activity.

Why it matters

The Gateway Tunnel project is considered essential infrastructure for the heavily populated and economically vital New York-New Jersey region. The existing Hudson River rail tunnels are over a century old and were damaged by Hurricane Sandy, putting a major strain on commuter and Amtrak rail traffic into New York City. Halting the project could have severe economic consequences for the region.

The details

The Trump administration froze billions in federal funding for the Gateway Tunnel project, as well as the extension of New York City's Second Avenue Subway, as the federal government was shutting down in late 2019. The administration blamed Senate Minority Leader Chuck Schumer, D-N.Y., for the impasse, though the project had previously received about $12 billion in federal pledges and was already under construction. The Department of Transportation said the funding freeze was pending a review of compliance with new rules on women and minority-owned businesses.

  • In late 2019, the Trump administration froze federal funding for the Gateway Tunnel project.
  • The existing Hudson River rail tunnels are 115 years old and were damaged by Hurricane Sandy in 2012.

The players

Mikie Sherrill

The Democratic governor of New Jersey who has strongly condemned the Trump administration's decision to freeze federal funding for the Gateway Tunnel project.

Donald Trump

The former president who ordered the freeze on federal funding for the Gateway Tunnel project, which Sherrill has called an 'illegal attack' on New Jersey.

Chuck Schumer

The Senate Minority Leader whom the Trump administration blamed for the impasse over the Gateway Tunnel project funding.

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What they’re saying

“If the president does not restore funding to this project, which I helped secure while serving in Congress, he will single-handedly kill nearly 100,000 jobs and $20 billion in economic activity.”

— Mikie Sherrill, Governor of New Jersey (1010wcsi.com)

“It's Chuck Schumer and Democrats who are standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration.”

— Kush Desai, White House Spokesman (1010wcsi.com)

What’s next

The Gateway Tunnel project is currently being kept alive temporarily by a line of credit, which is expected to run out on February 6th. Governor Sherrill and other officials have called on the Biden administration to immediately restore federal funding for the critical infrastructure project.

The takeaway

The dispute over the Gateway Tunnel project funding highlights the political tensions and partisan divides that can hinder essential infrastructure investments, even for projects with broad regional support and economic importance. Resolving the impasse will require bipartisan cooperation to ensure the project's completion and the economic benefits it would bring to the New York-New Jersey metropolitan area.