Court unlocks funding for Gateway tunnel as first $30 million released

The first $30 million in federal funding has been released for the Gateway Hudson River Tunnel project after a court ordered the Trump administration to restore previously frozen funds, New Jersey and New York officials said. The payment is part of $205 million needed immediately to restart construction on the long-delayed rail tunnel linking New Jersey and New York. 

According to NJ.com, state officials confirmed the U.S. Department of Transportation has begun processing payments following a federal court ruling requiring the release of project funds. Construction on the $16-billion project has been paused since early February due to the funding freeze, with the Gateway Development Commission stating work will not fully resume until the full $205 million in reimbursements is received.

The Gateway program includes construction of two new rail tunnels beneath the Hudson River and rehabilitation of the existing century-old tunnels, a critical piece of Northeast Corridor infrastructure. Initial tunneling work through the Palisades in North Bergen had been scheduled to begin this year before construction was halted, NJ.com reported.

See also: Judge rejects contractor's bid to halt Gateway Tunnel procurement

Litigation over the funding continues, with New Jersey and New York arguing federal agencies breached grant agreements finalized in 2024. Courts have ordered the federal government to restore funding while appeals proceed, and officials say additional payments are expected in the coming weeks as they work to restart construction and return workers to the job.

Read next: Gateway sues federal government as Hudson Tunnel funding freeze threatens construction halt

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