
The $16 billion Gateway Tunnel project — the most critical infrastructure project in the Northeast — is on the verge of a complete shutdown. The Trump administration has frozen $12 billion in federal funding, and the Gateway Development Commission warns construction will halt by February 6th if the money isn't released. Nearly 1,000 jobs hang in the balance as the 116-year-old Hudson tunnels continue to deteriorate.
The Gateway Program aims to build new rail tunnels under the Hudson River and rehabilitate the existing ones, which were severely damaged during Superstorm Sandy in 2012. The tunnels carry 200,000 Amtrak and NJ Transit riders daily and are considered the most critical chokepoint on the entire Northeast Corridor. In October 2025, the Trump administration announced it was terminating funding, citing a review of diversity contracting rules and, reportedly, a desire to punish Senator Chuck Schumer. Despite billions in federal allocations secured in 2024, the administration has withheld the funds, forcing the project to run on credit.