Trump Denies Trying to Extort Tunnel Funds, Contradicting His Own Staff

The president keeps changing his story on the Gateway tunnel project, further muddying the waters.

Published on Feb. 19, 2026

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President Donald Trump has repeatedly contradicted himself and his own staff over the Gateway tunnel construction project, which connects New York and New Jersey. After initially withholding federal funds for the $16 billion project, Trump later claimed he would restore the money if Democrats agreed to rename Penn Station and Dulles International Airport after him - an extortion attempt that was quickly shut down by a federal judge. Trump has since denied making such a proposal, calling it "fake news," even though his own White House press secretary confirmed the details just days earlier.

Why it matters

The Gateway tunnel project is considered one of the nation's most critical infrastructure investments, but Trump's shifting positions and false claims have created uncertainty and delays around the project's funding and completion. This case highlights the president's ongoing struggle to be truthful and consistent, which has broader implications for his credibility and ability to effectively govern.

The details

Last fall, the Trump administration cut off federal funds for the Gateway tunnel project, citing a need to review whether contracts were awarded with "diversity, equity and inclusion" considerations in mind. This prompted lawsuits from the affected states of New York and New Jersey. In February, a federal judge ordered the administration to restore the funding, but Transportation Secretary Sean Duffy quickly appealed the ruling. Trump then took to social media to condemn the project as a "future boondoggle," leading a Democratic senator to accuse the president of throwing an "unhinged tantrum."

  • In the fall of 2025, the Trump administration cut off federal funds for the Gateway tunnel project.
  • In February 2026, a federal judge ordered the Trump administration to restore the Gateway tunnel funding.
  • Shortly after the judge's ruling, Transportation Secretary Sean Duffy appealed the decision.
  • On Monday, February 17, 2026, Trump condemned the Gateway tunnel project on social media.

The players

Donald Trump

The 45th President of the United States, who has taken various contradictory positions on the Gateway tunnel project.

Sean Duffy

The U.S. Transportation Secretary who appealed the federal judge's ruling to restore Gateway tunnel funding.

Andy Kim

A Democratic U.S. Senator from New Jersey who accused Trump of throwing an "unhinged tantrum" over the Gateway tunnel project.

Chuck Schumer

The Senate Minority Leader, who rejected Trump's proposal to rename Penn Station and Dulles International Airport in exchange for restoring Gateway tunnel funding.

Jeannette Vargas

A U.S. District Judge who shut down Trump's extortion scheme to rename infrastructure in exchange for Gateway tunnel funding.

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What they’re saying

“A week later ...Trump decided to contradict his press secretary and claim that 'certain' unnamed people brought it up, all while claiming he now considers the story (that his own White House confirmed) to be 'fake news.'”

— Steve Benen, MS NOW Producer (alternet.org)

“This case highlights the president's ongoing struggle to be truthful and consistent, which has broader implications for his credibility and ability to effectively govern.”

— Steve Benen, MS NOW Producer (alternet.org)

“A completely unhinged tantrum from someone who didn't get their way.”

— Andy Kim, U.S. Senator (D-N.J.) (alternet.org)

“Absolute lie.”

— Chuck Schumer, Senate Minority Leader (alternet.org)

What’s next

The federal judge's ruling to restore Gateway tunnel funding remains under appeal by the Trump administration.

The takeaway

Trump's contradictory statements and attempts to politicize critical infrastructure projects like the Gateway tunnel have undermined public trust and created unnecessary delays, highlighting the broader challenges of governing effectively when truth and consistency are lacking.