Gateway Tunnel Construction Resumes Next Week After Feds Release Funds

NEW YORK CITY — New York elected officials have disclosed that the remaining nearly $130 million owed for the Gateway Tunnel project has been released by the Trump administration on Wednesday and that construction will resume.

“This funding freeze was unlawful from the start. We took swift action in court, and now every dollar that was illegally withheld has been released, James said in a statement. "These funds should never have been withheld in the first place. I am thrilled that hardworking New Yorkers can now get back on the job and move forward with the most important infrastructure project in the country.

"We will remain vigilant to ensure this funding continues uninterrupted, so that workers and commuters are never again left in limbo by the president’s targeted and unlawful whims,"James added.

Governor Kathy Hochul announced on Tuesday that construction on the site will resume next week.

"Construction resumes next week. A major win for workers and commuters. We’ll keep fighting to ensure the federal government meets its commitments," she said in a social media post.

Last Thursday, Feb. 12, a judge’s order took effect requiring the federal government to release funds for the project after a federal appeals court declined to overrule the lower court’s decision.

The 2nd Circuit Court of Appeals still referred an appeals decision to the motions panel, which will convene until the week of Feb. 23, at the earliest.

According to the lawsuit filed by New York and Jersey, the federal government hasn’t sent any funds for the project since October. New York and New Jersey are owed more than $200 million.

The Feb. 6 decision by U.S. District Judge Jeannette Vargas was expected to allow work to resume at the construction site. However, construction remained paused after she granted a brief stay of her order to allow the decision to be appealed.

Nearly 1,000 construction workers were laid off due to the construction pause.

On Feb. 9, more than 200 unionized workers held a rally in North Bergen on the New Jersey side of the Gateway Tunnel, demanding that the Trump administration release funds for the project.

The Gateway tunnel project aims to build a new rail tunnel under the Hudson River between New York and New Jersey that would carry Amtrak and other local transit trains.

In addition, they are repairing an existing 116-year-old rail tunnel that was damaged by Super storm Sandy in 2012. Construction work began in 2023 and gained federal funding after approval from then-president Joe Biden.

Vargas wrote in her initial decision that the plaintiffs had "adequately shown that the public interest would be harmed by a delay in a critical infrastructure project."

President Donald Trump in a social media post on Monday said that under no circumstances will "the federal government be responsible for any cost overruns."