Gateway tunnel faces immediate shutdown risk
Work on a major New York City rail tunnel project could stop within days if the Trump administration does not reinstate federal funding. Officials warned that construction on the Hudson River tunnel will pause as early as February 6, putting jobs and regional travel at risk.
The tunnel is a critical link between New York and New Jersey. It supports daily travel for hundreds of thousands of commuters and underpins a large share of the US economy. Without restored funding, project leaders say they have no choice but to suspend work.
Funding freeze threatens jobs and transit
The Gateway Development Commission and New Jersey Representative Josh Gottheimer told lawmakers that the funding freeze would lead to an immediate shutdown. Around 1,000 workers would lose their jobs right away.
The project includes repairs to the existing tunnel and construction of a new one. The current tunnel opened in 1910 and suffered heavy damage during Hurricane Sandy in 2012. Any major failure could cripple rail traffic in the region.
Officials stressed that the metropolitan area served by the tunnel generates about 10 percent of total US economic output. Roughly 200,000 passengers rely on the tunnel every day.
Billions already committed to the project
More than 1 billion dollars has already been spent on the tunnel effort. The full plan carries a price tag of about 16 billion dollars. That includes 12 billion in federal grants and 4 billion in federal loans approved under the previous administration.
The project serves Amtrak as well as state commuter rail systems. It is widely viewed as essential for long term transportation safety and economic stability in the Northeast.
President Donald Trump said last year that he had ended the project. His administration has also moved against other large transit projects in states led by Democrats.
Political battle intensifies
New Jersey Governor Mikie Sherrill sharply criticized the funding suspension. She said blocking the project threatens working families and the broader economy. She also described the move as unlawful.
The White House pushed back. Spokesman Kush Desai said Democrats were refusing to negotiate and accused them of prioritizing immigration issues over infrastructure. He argued that nothing prevents lawmakers from reaching a deal to restart the project.
The Transportation Department has also accused the Gateway project of violating rules tied to a federal program that supports small and disadvantaged businesses. Gateway officials responded that they are complying with current federal law.
New York leaders warn of severe impact
New York Governor Kathy Hochul warned that halting construction would hurt commuters and union workers. She said the decision puts thousands of jobs and billions in economic benefits at risk.
She also framed the move as part of a broader pattern of actions that harm New Yorkers. With the deadline approaching, state and federal officials continue to urge the administration to restore funding before work stops.
