Trump Administration Halts $16 Billion Hudson River Tunnel Project

Work on the Gateway project, the largest infrastructure project in the U.S., is winding down as federal funding is suspended.

Published on Feb. 6, 2026

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The Trump administration has suspended funding for the $16 billion Gateway rail tunnel project under the Hudson River between New York and New Jersey, threatening to bring construction to a halt. Nearly 1,000 workers have been employed on the project, with over $1 billion already spent, but the project's planners say almost all work will stop on Friday unless the federal government restores funding or a court intervenes.

Why it matters

The Gateway project is considered crucial infrastructure for the Northeast, providing a new rail tunnel to replace the aging and unreliable tunnels currently in use. The suspension of federal funding threatens to delay or derail the project, which has bipartisan support from state and local officials.

The details

The Gateway Development Commission, which oversees the project, has sued the federal government for breach of contract, saying it is owed over $200 million in unreimbursed expenses. New York and New Jersey have also filed a separate lawsuit. Federal officials have cited a need to review the project's contracts for compliance with new diversity policies as the reason for the funding suspension, though the White House has also blamed Democrats' stances on immigration.

  • The project's funding was suspended in 2025.
  • Nearly all work on the project is scheduled to stop on Friday, February 6, 2026.

The players

Gateway Development Commission

The project's planners and overseers, who have sued the federal government over the funding suspension.

Trump Administration

The federal government under former President Trump, which has suspended funding for the Gateway project.

Guido Rivieccio

A shop steward for Local 731 of the Laborers' Union, overseeing workers preparing to wind down construction activity.

Thomas Prendergast

The chief executive of the Gateway Development Commission.

Chuck Schumer

The Democratic senator from New York, whom the White House has blamed for the funding suspension.

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What they’re saying

“We're just in shutdown mode.”

— Guido Rivieccio, Shop Steward, Local 731 Laborers' Union (New York Times)

“If the pause is going to be days and weeks, it could stay here. If it's going to be months, that would be a different story.”

— Thomas Prendergast, Chief Executive, Gateway Development Commission (New York Times)

What’s next

The Gateway Development Commission and the states of New York and New Jersey have filed lawsuits against the federal government over the funding suspension. A court will decide whether to order the restoration of funding or allow the project to be halted.

The takeaway

The suspension of federal funding for the crucial Gateway rail tunnel project under the Hudson River highlights the political tensions and uncertainties surrounding major infrastructure investments in the U.S. The project's fate remains uncertain, with thousands of jobs and the region's transportation needs hanging in the balance.