New York Tunnel Project Resumes After Trump Releases Frozen Funds

Construction on the $16 billion Hudson Tunnel Project will restart next week after the federal government unfroze $127 million in funding.

Feb. 22, 2026 at 7:55pm

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The massive $16 billion Hudson Tunnel Project in New York will resume construction next week after the Trump administration released $127 million in frozen federal funding. The project had been halted since October 1st, putting 1,000 workers out of a job, after New York and New Jersey sued the U.S. Department of Transportation for withholding $205 million in funding.

Why it matters

The Hudson Tunnel Project is a critical infrastructure initiative that will build a new commuter rail tunnel connecting Manhattan and New Jersey, repairing a century-old tunnel used by over 200,000 travelers and 425 trains daily. The funding freeze had threatened to significantly delay this important project.

The details

The Trump administration had withheld $205 million in federal funding for the Hudson Tunnel Project since October 1st, triggering a halt to construction that put 1,000 workers out of a job. New York and New Jersey sued the U.S. Department of Transportation over the funding freeze. Governor Kathy Hochul announced that the $127 million in frozen funds has now been released, allowing construction to resume next week.

  • The Hudson Tunnel Project funding was frozen on October 1, 2025.
  • Construction on the project will resume next week.

The players

Kathy Hochul

The Governor of New York.

U.S. Department of Transportation

The federal agency that had withheld $205 million in funding for the Hudson Tunnel Project.

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What they’re saying

“Construction on the massive $16 billion Hudson Tunnel Project will resume next week after the Trump administration released $127 million in frozen funding.”

— Kathy Hochul, Governor of New York

The takeaway

The resumption of the Hudson Tunnel Project is a win for New York and New Jersey, as this critical infrastructure initiative can now move forward after a months-long funding freeze threatened to significantly delay its progress. This highlights the importance of stable federal support for major transportation projects.