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Gateway Hudson River Tunnel Work to Halt Friday as Trump Administration Withholds Funds

Exhausted financing after a months-long federal freeze has pushed project leaders into court to unlock payments.

Overview

  • Gateway officials said construction will pause Friday, with roughly 1,000 workers expected to be laid off.
  • Federal grants and loans have been on hold since October, initially cited for a compliance review and later linked by the White House to broader political disputes.
  • The Gateway Development Commission sued this week seeking $205 million in withheld payments, while New York and New Jersey filed a separate case with an emergency hearing expected Friday.
  • Winding down requires backfilling excavations, securing sites, maintaining a Hudson River cofferdam, and mothballing two tunnel-boring machines, with maintenance estimated at $15–20 million per month.
  • About $2 billion has been spent on the $16 billion program, and project leaders warn a prolonged pause risks losing specialized labor and complicating any restart.