Construction on Gateway Tunnel Resumes
As Protracted Pause of Fed Funding Ends
NEW YORK—The Gateway Development Commission (GDC) announced last week that construction of the Hudson Tunnel Project had resumed, after nearly a month of work stoppage caused by withholding of federal funds by the Trump administration beginning on Feb. 6. The pause idled nearly 1,000 construction workers.
GDC is now funding this construction work using approximately $235 million the Commission received from the federal government earlier this month.
“Hundreds of workers will return to GDC’s construction sites in New York and New Jersey,” said Alicia Glen, New York GDC commissioner and co-chair. “This is great news for these workers, the hundreds of the entire region, but we cannot take our eyes off the ball. We need every federal dollar accounted for in our grant and loan agreements to build this tunnel.
Ms. Glen added, “I’m grateful for the many elected leaders, including Senate Minority Leader Charles Schumer and Gov. Kathy Hochul, who have fought for the project, as well as the united front of business and labor leaders, construction workers, civic and industry groups, transportation advocates and community members who support this vital investment in our region. Your advocacy has made it possible for us to resume work, and together we will get this tunnel built.”
Construction activities that will advance in the weeks ahead include:
- Continuing excavation of the tunnel boring machine (TBM) launch box at the portal to the new tunnel.
- Preparing to assemble the components of the first TBM on site in North Bergen, NJ.
- Coordinating the delivery of the second TBM, which is ready for shipment from the manufacturing facility.
- Continuing slurry wall installation for the 12th Avenue Access Shaft and beginning excavation of the Hudson County Access Shaft.
- Constructing a marine platform for work associated with the Manhattan Tunnel.
- Continuing ground stabilization in the Hudson River.
- Conducting site clearing work to prepare for the New Jersey Surface Alignment Project.
While work on GDC’s active construction projects resumes, two major procurements for work on the Hudson River Tunnel and New Jersey Surface Alignment contracts will remain on hold until GDC regains access to all $15 billion in federal grants and loans that has been paused since Oc. 1, 2025. Both of these contracts were scheduled for award in late 2025/early 2026.
Meanwhile, another major project is being impacted by funding issues with the federal government. Multiple published reports stated that the Metropolitan Transportation Authority has threatened to sue the federal government unless funding for the Second Avenue Subway expansion resumes within a week. The MTA on Feb. 25 sent a letter to the Trump administration demanding more than $58 million owed for the project by March 6 stating that further delays could stall the second phase of the Second Avenue Subway project, which recently began construction. Funding for the $7.7-billion Second Avenue Subway was halted during the October government shutdown, along with funding for the Gateway project.
Published: March 3, 2026