Overview
- President Trump escalated his stance this week, telling reporters and Fox Business that the Gateway tunnel is “terminated” and “pretty much dead right now,” though no formal permanent defunding has been documented.
- OMB Director Russell Vought previously announced a hold on roughly $18 billion for New York infrastructure, including Gateway and the Second Avenue Subway, citing what he called unconstitutional DEI principles.
- The Transportation Department said compliance reviews were underway but delayed by staff furloughs during the shutdown, and project officials reported that federal reimbursements are on hold rather than canceled.
- On-site work continues at multiple locations in New York and New Jersey, with the Gateway Development Commission and labor groups citing active contracts, ongoing shaft and portal construction, and a target of completing the new tunnel by 2035.
- New York and New Jersey leaders, including Sen. Chuck Schumer and Gov. Kathy Hochul, condemned the threat and vowed legal and political pushback, warning of job losses and transit and economic risks tied to aging tunnels damaged during Superstorm Sandy.