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| New York-New Jersey tunnel construction on hold, Trump must release funds  The administrative stay runs through Feb. 12 at 5 p.m. and preserves the status quo while the U.S. Court of Appeals for the Second Circuit considers whether to intervene.The Gateway Development Commission (GDC) filed a lawsuit against the federal government seeking judgment that would release contractually-obligated grant and loan funds for the Hudson Tunnel Project (HTP). HTP is an urgent investment in America’s passenger rail network that involves building a new train tunnel connecting New Jersey and New York under the Hudson River and rehabilitating the North River Tunnel, which has been in service since 1910 and is a source of chronic delays for hundreds of thousands of daily riders. The majority of the budget for the project is funded by federal grants. More than $1 billion worth of construction and investment has already been made into building the HTP. Despite its contractual commitments to fund the project, the federal government has suspended the release of its contractually obligated funds since October 1, 2025. "The Gateway Tunnel is essential to the future of New York and the economy of the entire region - every day 200,000 commuters who power 20% of the nation's economy depend on a safe, reliable ride under the Hudson River, " New York Governor Kathy Hochul said. "For months, Donald Trump and his enablers in Washington have illegally withheld committed funding for this project in a brazen act of political retribution intended to hurt New Yorkers, putting thousands of union jobs and billions of dollars in economic benefits at risk. I said New York would fight like hell to keep this project moving and today, that is exactly what we are doing." Federal payments had not resumed and that construction was halted late last week. Project officials have warned that even brief interruptions can cascade through tunneling schedules because workforce remobilization, procurement restarts and safety re-certifications typically take weeks rather than days. write your comments about the article :: © 2026 Construction News :: home page |