politics
February 18, 2026
Trump administration releases $127 million in overdue funds for New York-New Jersey Gateway tunnel project president had called a 'future boondoggle'
President Donald Trump asserted that the federal government will not be responsible for any cost overruns associated with the $16 billion tunnel project.
TL;DR
- The Trump administration released the final $98 million in overdue funds for the Gateway rail tunnel project, plus $30 million in reimbursements.
- A federal judge had previously blocked the administration from withholding the funds.
- The funding suspension had led to a work stoppage, threatening nearly 1,000 jobs.
- Construction is expected to resume next week.
- New York's governor emphasized the need for ongoing funding certainty for the project.
- President Trump had previously criticized the project as a 'future boondoggle' and denied offering to release funds in exchange for renaming Penn Station.
- New York and New Jersey Attorneys General had sued the Trump administration over the withheld funds.
- The Gateway project aims to renovate infrastructure, including fixing and replacing the aging North River Tunnel under the Hudson River.
- The project is funded by the federal government, New York, New Jersey, and Amtrak.
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