THE Gateway Development Commission (GDC) announced on February 24 that construction work will resume this week on the Hudson Tunnel Project, the programme it is delivering to build a new rail tunnel between New York and New Jersey.
Work was suspended on February 6, after funding for the project was exhausted. The US Department of Transportation (USDOT) began withholding federal funding on October 1 2025 as it undertook a review of the project, but GDC has now received $US 235m in federal funding as result of a legal challenge by the states of New York and New Jersey.
On February 12 the US Court of Appeals for the 2nd Circuit upheld an earlier order made by a district judge that the states are likely to succeed in their lawsuit. This alleges that the Trump administration has acted in an arbitrary manner and contrary to legal procedure when freezing federal funding agreed to meet 70% of project cost.
With federal funding secured for the time being, GDC says that work to be undertaken in the coming weeks will include continuing the excavation of the tunnel boring machine (TBM) launch box at the tunnel portal in North Bergen in New Jersey. Preparations will be made to assemble the components of the first TBM at North Bergen, and to coordinate the delivery of the second TBM that is ready for delivery from the manufacturing facility.
While work on active construction projects will resume, GDC says that procurement of two major contracts will remain on hold until it regains access to all $US 15bn in federal grants and loans previously committed to the project. Originally due to be awarded in late 2025 or early 2026, the contracts cover work on the Hudson River Tunnel itself and the surface alignment in New Jersey.
Over $US 1bn has been spent on construction since work began on the Hudson Tunnel Project in 2023. GDC says that it continues to cooperate with its federal funding partners while exploring all avenues for restoring full funding for the project to ensure it is delivered to scope, on schedule, and to budget.
“I will do everything possible to restore consistent and reliable funding to deliver this project for our workers, our riders, and the national economy,” says GDC CEO, Tom Prendergast.
“We cannot take our eye off the ball,” says Alicia Glen, New York GDC commissioner and co-chair. “We need every federal dollar accounted for in our grant and loan agreements to build this tunnel.”
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