Trump Threatens to Withhold Funds for Critical Tunnel Project

President Trump denounces Gateway Project as a 'disaster' but suggests he may release funding if conditions are met.

Published on Feb. 17, 2026

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Just days after being ordered by a judge to release $16 billion in federal funding for the critical Gateway tunnel project connecting New York and New Jersey, President Donald Trump took to social media to denounce the project as a 'disaster' and threaten to withhold federal funds unless 'hard work and proper planning' is done to avoid 'insurmountable future cost overruns'.

Why it matters

The Gateway Project is seen as a desperately needed infrastructure improvement by local leaders, but has faced political opposition from the Trump administration. Trump's latest statements suggest he may still try to exert control over the project, even after being legally compelled to release the previously appropriated funds.

The details

Trump had initially halted funding for the Gateway Project, citing concerns about 'unconstitutional DEI principles.' Earlier this month, he reportedly told Senate Minority Leader Chuck Schumer that he would release the funds if Congress agreed to rename Washington's Dulles International Airport and New York's Penn Station after him - a request Schumer apparently refused. The administration ultimately complied with the judge's order to unfreeze the project's federal funding last week.

  • On February 13, 2026, a judge ordered the Trump administration to release $16 billion in federal funding for the Gateway Project.
  • On February 16, 2026, President Trump took to social media to denounce the Gateway Project as a 'disaster' and threaten to withhold federal funds.

The players

Donald Trump

The former President of the United States who initially halted funding for the Gateway Project and is now threatening to withhold federal funds unless certain conditions are met.

Chuck Schumer

The Senate Minority Leader who reportedly refused Trump's request to rename Dulles International Airport and Penn Station after him in exchange for releasing the Gateway Project funds.

Gateway Project

A planned tunnel connecting New York and New Jersey that local leaders say is desperately needed infrastructure improvement.

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What they’re saying

“I am opposed to the future boondoggle known as 'Gateway,' in New York/New Jersey, because it will cost many BILLIONS OF DOLLARS more than projected or anticipated.”

— Donald Trump (Truth Social)

“Gateway will be financially catastrophic for the region, unless hard work and proper planning is done, NOW, to avoid insurmountable future cost overruns.”

— Donald Trump (Truth Social)

What’s next

The judge's order to release the $16 billion in federal funding for the Gateway Project remains in effect, but it is unclear if the Trump administration will attempt to impose additional conditions or requirements before fully complying.

The takeaway

This latest development in the ongoing battle over the Gateway Project highlights the continued political tensions surrounding major infrastructure projects, even after funding has been legally secured. It remains to be seen whether the Trump administration will find a way to exert further control over the project or if local leaders will be able to move forward without additional interference.