Gateway Project Receives $30M in Frozen Funds, More Expected

The long-delayed rail tunnel project will get the full $205 million owed by the Trump administration by next week.

Published on Feb. 14, 2026

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The Gateway rail tunnel project has received an initial $30 million in federal funds that were previously frozen by the Trump administration. The full $205 million owed to the project is expected to be disbursed by next Wednesday, according to people familiar with the matter. Construction on the project remains paused for now as officials work to deploy the funds effectively and get workers back on the job.

Why it matters

The Gateway project is a critical infrastructure initiative to build a new rail tunnel between New York and New Jersey, replacing aging and unreliable tunnels. The Trump administration had previously frozen the federal funds for the project, citing concerns over diversity and inclusion practices, drawing criticism from Democratic lawmakers who argued the funds were appropriated by Congress and should be released.

The details

The U.S. District Court Judge Jeannette Vargas has directed the Trump administration to file a status report by Tuesday on their efforts to transfer the full $205 million in funds to the Gateway project. This comes after New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport called for an emergency hearing on Friday to address the frozen funds.

  • On February 13, 2026, the Gateway project received an initial $30 million in federal funds that had been previously frozen.
  • The full $205 million owed to the Gateway project is expected to be disbursed by next Wednesday, February 19, 2026.

The players

Gateway

The Gateway rail tunnel project is a critical infrastructure initiative to build a new rail tunnel between New York and New Jersey, replacing aging and unreliable tunnels.

Chuck Schumer

The Senate Minority Leader from New York, who has been pushing to unfreeze the funding for the Gateway project.

Letitia James

The New York Attorney General who, along with the New Jersey Acting Attorney General, called for an emergency hearing to address the frozen funds for the Gateway project.

Jennifer Davenport

The Acting Attorney General for New Jersey who, along with the New York Attorney General, called for an emergency hearing to address the frozen funds for the Gateway project.

Jeannette Vargas

The U.S. District Court Judge who directed the Trump administration to file a status report on their efforts to transfer the full $205 million in funds to the Gateway project.

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What they’re saying

“These Gateway funds were appropriated by Congress and committed by contract, and they never should have been cut off by President Trump. The first $30 million has been sent, and we eagerly await the rest of the money to be sent as quickly as possible so construction can resume.”

— Chuck Schumer, Senate Minority Leader

“Because of our efforts, the Department of Transportation is finally delivering the Gateway project funds it has been unlawfully freezing for months. When we fight, we win. We will always stand up for the Gateway project, for New Jerseyans, and for our workers from attacks out of Washington, D.C.”

— Jennifer Davenport, New Jersey Acting Attorney General

What’s next

The U.S. District Court Judge Jeannette Vargas has directed the Trump administration to file a status report by 3 p.m. Tuesday on their efforts to transfer the full $205 million in funds to the Gateway project.

The takeaway

The release of the frozen federal funds for the Gateway project is a significant victory for Democratic lawmakers and state officials who have been fighting to secure the necessary resources to advance this critical infrastructure initiative. However, the project still faces challenges, including the need to effectively deploy the funds and get construction workers back on the job to resume work.