Gateway Tunnel construction faces shutdown next week as Trump withholds federal funding
(UI) — Construction on the Gateway Tunnel Project linking New York and New Jersey could come to a halt within days if federal funding remains blocked by the Trump administration, threatening jobs, regional mobility, and billions in economic activity, according to CBS News New York.
Officials with the Gateway Development Commission said project funds are expected to be exhausted by Feb. 6, forcing a pause in construction on the long-planned rail tunnel beneath the Hudson River. The project is intended to replace and expand the century-old North River Tunnel, which was heavily damaged during Hurricane Sandy and remains a major source of delays along the Northeast Corridor.
A construction shutdown would immediately trigger layoffs and disrupt work on one of the busiest passenger rail routes in the United States. Commission officials warned that even a short pause could have cascading economic consequences, while a prolonged delay would significantly raise the risk of service disruptions if the existing tunnel were to fail.
New York and New Jersey leaders renewed calls for the White House to restore funding, arguing the project is essential to the region’s economy and transportation system. New York Gov. Kathy Hochul said the decision to withhold federal support puts daily commuters, union jobs, and long-term economic growth at risk.
U.S. Senate Minority Leader Chuck Schumer also warned that continued delays could backfire politically and economically, noting that an emergency failure of the aging tunnel would be far more costly than completing the project as planned.
New Jersey Gov. Mikie Sherrill described the Gateway Tunnel as the most urgent infrastructure project in the country, warning that extended delays could jeopardize tens of thousands of jobs and tens of billions of dollars in economic output.
The Gateway Development Commission said an immediate pause would result in roughly 1,000 job losses, while a longer shutdown could endanger more than 95,000 jobs and nearly $20 billion in economic activity. Officials also cautioned that suspending work increases the likelihood that the 116-year-old North River Tunnel could be forced out of service, worsening delays for hundreds of thousands of rail passengers.
The White House, meanwhile, placed blame on congressional Democrats for the funding impasse. A spokesperson said negotiations had stalled and accused lawmakers of refusing to engage with the administration on broader spending priorities.
Federal funding for the Gateway Tunnel was secured in 2024, but the administration announced in October that the money would be placed on hold pending further review. Administration officials have said the pause is intended to ensure federal infrastructure dollars are not allocated under policies the president opposes.
As reported by CBS News New York, transportation officials and lawmakers continue to press for a resolution, warning that delaying the project now could lead to far greater costs if the aging tunnel fails before replacement infrastructure is completed.
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