Gateway Leaders Say Federal Funds Flowing, Work Set to Resume Next Week

What happened: Work on the $16 billion Hudson River Tunnel project between New York and New Jersey can resume now that the U.S. Department of Transportation (DOT) released nearly $130 million in funding as directed by a federal court last week.

The Department paused federal reimbursements for the project on Oct. 1, 2025, amid political skirmishes over the federal government shutdown. At that time, DOT announced it would hold these payments so it could review the project’s contracting policies to ensure compliance with a new interim final rule for the Disadvantaged Business Enterprise (DBE) program, which took effect two days later. Congress and federal agencies have allocated $11 billion for the tunnel and related projects.

Running low on funds, the Gateway Development Commission (GDC), an entity formed by both states and Amtrak, halted work on the project Feb. 6. The two states and the GDC had filed separate federal lawsuits days earlier.

Why it matters: The GDC calls its Gateway Program “the most urgent infrastructure program in the country – a comprehensive set of rail investments that will improve commuter and intercity services, add needed resiliency, and create new capacity for the busiest section of the Northeast Corridor (NEC). The NEC is the most heavily used passenger rail line in the country hosting more than 2,200 train movements and 800,000 passenger trips daily.”

What’s next: GDC also said they are “working with our contractors to deploy these funds to resume work as soon as possible. Letters will be sent to contractors today [Feb. 18], and construction activities are expected to resume next week.”