US Releases $77 Million More in Frozen Funding for New York Tunnel Project

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The Trump administration has released another $77 million in frozen federal funding for the $16 billion Hudson Tunnel Project in New York, according to Governor Kathy Hochul. This comes after New York and New Jersey sued the US Department of Transportation for refusing to release $205 million in funding since October 2025. The Gateway Development Commission, overseeing the project, says construction remains paused but they are working to get workers back on the job to resume construction as soon as possible.

Why it matters

The Hudson Tunnel Project is a critical infrastructure initiative to build a new rail tunnel under the Hudson River connecting New York and New Jersey. The project has faced funding challenges and political disputes, and the release of this additional federal money is a significant development that could help get the long-delayed project back on track.

The details

The Trump administration had previously frozen $205 million in federal funding for the Hudson Tunnel Project, prompting a lawsuit from New York and New Jersey. On Friday, the US Department of Transportation released $30 million, and this latest $77 million brings the total released funds to $107 million. The Gateway Development Commission, which oversees the project, says construction remains paused but they are working to resume work as soon as possible.

• On October 1, 2025, the USDOT refused to release $205 million in federal funding for the project.
• On February 17, 2026, the Trump administration released an additional $77 million in frozen federal funding.
• On February 13, 2026, the USDOT had previously released $30 million in frozen funding.

What they’re saying

What’s next

The Gateway Development Commission says they are working to resume construction on the Hudson Tunnel Project as soon as possible now that additional federal funding has been released.