Trump Threatens to Withhold Funds for Gateway Tunnel Project

Former president refutes claims he demanded renaming of Penn Station in exchange for federal assistance.

Published on Feb. 17, 2026

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Former President Donald Trump has threatened to withhold federal assistance for the $16 billion Gateway tunnel project, which would add a new rail tunnel under the Hudson River between New York City and New Jersey. Trump's comments come after the project was forced to pause earlier this month, resulting in around 1,000 workers losing their jobs. The president also refuted claims that he demanded the renaming of New York's Penn Station in exchange for federal funds.

Why it matters

The Gateway tunnel project is a critical infrastructure initiative that would expand rail capacity between the two states, benefiting hundreds of thousands of commuters daily. Trump's threats to withhold federal support could jeopardize the project's progress and impact the regional economy.

The details

Work on the Gateway project had paused earlier this month before a recent court ruling, resulting in around 1,000 workers losing their jobs. The project would add a new rail tunnel under the Hudson River, expanding the number of tunnels between New York City and New Jersey.

  • The project was forced to pause earlier this month.
  • Work on the $16 billion project had been ongoing prior to the pause.

The players

Donald Trump

Former president of the United States who has threatened to withhold federal assistance for the Gateway tunnel project.

Andy Kim

Democratic senator from New Jersey who called Trump's comments "a completely unhinged tantrum from someone who didn't get their way".

Mikie Sherrill

Governor of New Jersey who vowed to continue legally challenging Trump until the funding is fully restored.

Kirsten Gillibrand

Democratic senator from New York who said "good-paying jobs and modern infrastructure are more important than partisan distractions".

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What they’re saying

“Until his illegal actions forced the project to shut down, threw 1,000 hard-working men and women off the job, and threatened the commutes of 200,000 people a day, Gateway was on time and on budget.”

— Mikie Sherrill, Governor of New Jersey

“The president should stop the political games, take a break from posting, and actually focus on helping working families.”

— Kirsten Gillibrand, Democratic senator from New York

What’s next

The judge in the case will decide on Tuesday whether or not to allow the federal government to continue withholding funds for the Gateway tunnel project.

The takeaway

This dispute over the Gateway tunnel project highlights the ongoing political tensions and partisan divisions that can hinder critical infrastructure investments, even when they have broad support and economic benefits for the region.