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Trump Says Gateway Tunnel Funding Is Terminated, Formal Cut Still Unclear

A DEI-focused freeze plus a shutdown-stalled DOT review leave the project’s federal support in limbo.

Overview

  • President Trump declared the $16 billion Gateway rail tunnel "terminated," though news outlets report there is no confirmation of a formal defunding action.
  • The Office of Management and Budget previously paused roughly $18 billion for New York infrastructure, including Gateway, citing "unconstitutional" DEI-based contracting.
  • The Transportation Department said its review of alleged unconstitutional practices was halted by shutdown furloughs, leaving no completed findings on Gateway or the Second Avenue Subway.
  • Trump said the administration will release a list of Democratic-backed projects to lose funding on Friday, drawing swift condemnation from New York and New Jersey officials who vowed to fight.
  • Gateway would add a new Hudson River rail tunnel to supplement the century-old, Sandy-damaged North River Tunnel; construction activity had begun using mixed funding, with river excavation slated for 2026 and first service targeted for 2035.