Trump Administration to Release Frozen Gateway Tunnel Funds Next Week

New Jersey governor criticizes delays in construction project as workers remain off the job

Published on Feb. 13, 2026

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The legal battle over the release of federal funds for the Gateway Tunnel Project in New York and New Jersey continues, with the Trump administration now saying the more than $200 million in frozen funds will be released next Tuesday after the Presidents' Day federal holiday. New Jersey Governor Mikie Sherrill slammed the political back-and-forth, pointing out the money spent on legal fees for a project Congress had already approved.

Why it matters

The Gateway Tunnel Project is a critical infrastructure project that would build a new rail tunnel connecting New York and New Jersey under the Hudson River. The delay in funding has halted construction, leaving around 1,000 workers off the job and raising concerns about the deteriorating condition of the existing tunnel.

The details

A federal court order blocking funding for the project expired, but the Trump administration was required to release the money. An appeals court then scheduled a hearing on the government's motion to continue freezing the funds for Feb. 23. Governor Sherrill said officials expected the funds to be released on Friday, but the federal government estimated the funds would not be released until Tuesday due to the Presidents' Day holiday.

  • The deadline for an appeals court to allow President Trump to continue holding up construction on the Gateway Tunnel Project passed yesterday.
  • About 1,000 construction workers have been off the job since last Friday, when the Trump administration froze federal dollars.
  • The federal government estimated the funds would not be released until Tuesday, February 18, 2026 due to the Presidents' Day federal holiday on Monday.

The players

Mikie Sherrill

The Governor of New Jersey who criticized the political back-and-forth over the Gateway Tunnel Project funding and said it's time for people to get back to work.

Donald Trump

The former President of the United States who froze federal funding for the Gateway Tunnel Project, which has halted construction and left around 1,000 workers off the job.

Adam Pezanowski

A worker with Liuna Local 472 who said the job loss from the funding freeze was "history" for them and they were all excited to be part of the project.

Joe Barbuto

A worker with Teamster Local 560 who said the delay is unfair to him, his family, and others who lost their jobs on the multiple projects related to the Gateway Tunnel.

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What they’re saying

“It's way past time that the president releases the Gateway Tunnel funds. He's illegally stopped them, the courts have spoken, and now it's time for people to get back to work.”

— Mikie Sherrill, Governor of New Jersey (CBS News New York)

“This job was history for us. We were all excited about being a part of this.”

— Adam Pezanowski, Worker with Liuna Local 472 (CBS News New York)

“You're rolling the dice if something happens to that other tunnel. This is not fair to me or to my family, or anyone else that lost their jobs on the multiple projects from Newark, New Jersey, to Penn Station in Manhattan.”

— Joe Barbuto, Worker with Teamster Local 560 (CBS News New York)

What’s next

The appeals court has scheduled a hearing on the government's motion to continue freezing the funds for February 23, 2026.

The takeaway

The delay in releasing funding for the critical Gateway Tunnel Project has halted construction, leaving hundreds of workers off the job and raising concerns about the deteriorating condition of the existing tunnel. This political back-and-forth has wasted time and money, underscoring the need for bipartisan cooperation on important infrastructure projects.