Funding Begins to Resume for Hudson Tunnel Project

The U.S. Department of Transportation has released $107 million in federal funding for the Hudson Tunnel Project, Reuters reported on Feb. 17. CBS quoted N.Y. Sen. Chuck Schumer as saying that $98 million in additional funding was expected shortly. Funding for the massive infrastructure project was suspended beginning on Oct. 1, 2025, forcing the Gateway Development Commission (GDC), the group overseeing the construction, to pause all construction activities as of Feb. 6.

Reuters reports that the DOT has released a total of $107 million. A federal court ruling earlier this month ordered that federal funding for the $16 billion program be restored, specifically $205 million that was due to the project since Oct. 1.

In a statement released Feb. 18, GDC wrote: “Gateway Development Commission (GDC) has received the full reimbursement owed to us from the federal government and now has more than $205 million available to fund work on the Hudson Tunnel Project. We are working with our contractors to deploy these funds to resume work as soon as possible. Letters will be sent to contractors today, and construction activities are expected to resume next week. We continue to pursue all avenues to secure access to the full amount of federal funding for the Hudson Tunnel Project, including our lawsuit.”

The government is expected to appeal the ruling, according to ABC-7 in New York.

70 percent of the Hudson Tunnel Project’s $16 billion budget – roughly $12 billion – is funded by federal grants. The other $4 billion is funded through USDOT Build America Bureau loans to be repaid by the States of New York and New Jersey and by the Port Authority of New York and New Jersey. More than $1 billion taxpayer dollars have been spent on construction of the Hudson Tunnel Project to date.

The Hudson Tunnel Project is a major rail initiative to build a new two-track passenger rail tunnel under the Hudson River between New Jersey and New York City and then rehabilitate the existing, century-old North River Tunnel that was damaged during Superstorm Sandy. The existing tunnels are a vital component of the Northeast Corridor connecting Boston and D.C., the nation’s busiest passenger rail corridor.