Judge says Trump must release funds for $16B New York-New Jersey tunnel
The Trump administration halted funding for the Gateway Tunnel project in October, and construction was expected to stop Friday night unless a court intervened.The Hudson Gateway Tunnel project to connect New Jersey to Penn Station in New York City
Updated Feb. 6, 2026, 9:33 PM GMT-5 / By Gary Grumbach, Chloe Atkins and Kyla Guilfoil
A federal judge on Friday temporarily blocked the Trump administration from suspending federal disbursements for the Gateway Tunnel project.
Construction on the project was expected to stop Friday night without court intervention. Judge Jeannette Vargas has also asked for both parties to submit additional information on the issue within the next few days.
The tunnel is being constructed under the Hudson River to connect New York and New Jersey. The pause in building would have resulted in the immediate loss of nearly 1,000 jobs, according to a press release from the project, and an extended pause could put about 11,000 construction jobs at risk.
The administration halted funding for the $16 billion project when the government shut down last fall. But despite the shutdown ending in November and government funding packages passing this week, the administration has not released the funds.
The administration asked Senate Minority Leader Chuck Schumer, D-N.Y., for Dulles International Airport in Washington and Penn Station in New York to be named after President Donald Trump in exchange for releasing the funds needed to build the tunnel, multiple sources told NBC News on Thursday.
The $16.1 billion project includes a new railway tunnel under the Hudson River that would link New York and New Jersey. The administration’s freeze came after the project already underwent years of delays and other problems. It was revitalized in 2024 after President Joe Biden’s administration said it would provide an additional $6.9 billion in funding.
Judge says Trump must release funds for $16B New York-New Jersey tunnel
The Trump administration halted funding for the Gateway Tunnel project in October, and construction was expected to stop Friday night unless a court intervened.
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