White House Holds Up Funding for $16B NY Transportation Project

The Gateway project to build a new commuter rail tunnel between New York and New Jersey is in limbo.

Published on Feb. 6, 2026

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A $16 billion transportation infrastructure project in New York, known as the Gateway project, is at risk of being delayed or defunded unless the Trump administration agrees to provide federal funding support. The Gateway project is building a new commuter rail tunnel between New York and New Jersey to replace aging infrastructure.

Why it matters

The Gateway project is considered critical infrastructure for the Northeast region, as the existing rail tunnel is over a century old and in dire need of replacement. Delays or lack of funding could severely impact commuter rail service between New York and New Jersey, which is a vital transportation link for the region's economy.

The details

The Gateway project involves constructing a new two-track rail tunnel under the Hudson River to supplement and eventually replace the existing century-old tunnel. The project also includes other infrastructure improvements like bridge replacements and station upgrades. However, the Trump administration has so far refused to commit federal funding, putting the entire project in jeopardy.

  • The Gateway project has been in development since 2011.
  • The existing Hudson River rail tunnel was built in 1910.

The players

Trump administration

The current presidential administration led by President Donald Trump, which has so far refused to provide federal funding support for the Gateway project.

Gateway project

A $16 billion transportation infrastructure project to build a new commuter rail tunnel between New York and New Jersey, replacing aging infrastructure.

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What they’re saying

“We must not allow political gridlock to jeopardize this critical infrastructure project that is vital for the Northeast economy.”

— Andrew Cuomo, Governor of New York (NPR)

What’s next

The Trump administration must decide whether to provide federal funding support for the Gateway project in the coming months, or risk delaying or canceling the entire $16 billion endeavor.

The takeaway

The fate of the Gateway project highlights the ongoing political tensions around infrastructure funding and the challenge of securing bipartisan support for major transportation initiatives, even for projects considered essential for regional economic growth.