Gateway Hudson Tunnel construction resumes but funding uncertainty could halt work again
Construction activity has resumed at every work site tied to the Hudson Tunnel Project, though the project could face another shutdown within months if federal funding does not continue to flow, according to reporting by NJB Magazine.
The Gateway Development Commission (GDC) confirmed that crews have returned to sites that were previously idled after the Trump administration withheld funding tied to the rail project. However, the agency said construction could be paused again within two to three months if additional federal funding payments are not released.
Despite the funding uncertainty, several components of the project have moved forward in 2026. The Tonnelle Avenue Bridge and Utility Relocation Project was finalized after crews completed paving and striping on the new roadway, allowing space beneath the bridge for tunnel boring machine (TBM) assembly.
Equipment for the first TBM designated for the Palisades Tunnel Project has already arrived in North Bergen, New Jersey, where crews are preparing the machine for assembly. A second TBM has also left the factory and is expected to begin arriving on-site in March.
Additional progress includes the completion of the Hudson County Access Shaft slurry wall, which forms a watertight underground barrier for the shaft ahead of excavation scheduled to begin this spring. Preparatory work has also started near the Manhattan bulkhead, where crews are installing piping and constructing a platform to support ground-freezing operations needed before tunnel boring begins.
Meanwhile, stabilization work inside a Hudson River cofferdam has resumed, including deep soil mixing to reinforce the riverbed for future tunneling. Crews have also finished placing the concrete invert slab for the Hudson Yards Concrete Casing – Section 3 tunnel box, with more than 11,000 cubic yards of concrete poured so far as wall construction continues, as reported by NJB Magazine.
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