Federal Funding Resumes for $16B Gateway Tunnel Project

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Federal funding for the $16 billion Gateway Tunnel project under the Hudson River is set to resume after the Trump administration agreed to release the money, ending a four-month halt that had paused construction. The decision restores work on the critical New York–New Jersey rail link and allows the project to move forward.

Why it matters

The Gateway Tunnel project is a crucial infrastructure initiative that will improve rail connectivity between New York and New Jersey, two of the most economically important regions in the United States. The resumption of federal funding is a significant development that will allow construction to restart on this long-delayed and much-needed project.

The details

The Gateway Tunnel project is a $16 billion plan to build a new rail tunnel under the Hudson River, connecting New York and New Jersey. The project had been paused for four months due to a funding dispute with the Trump administration, but that impasse has now been resolved, allowing construction to resume.

• Federal funding for the project was halted in October 2025.
• Construction on the Gateway Tunnel project is now set to restart in February 2026.

What’s next

With federal funding now restored, construction on the Gateway Tunnel project is expected to resume in the coming weeks, with the goal of completing the new rail link by 2030.