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Construction on the $16 billion Gateway Tunnel Project connecting New Jersey to New York City could grind to a halt by February 6 unless federal funding is restored, threatening nearly 1,000 immediate jobs and long-term regional economic stability.
The Gateway Development Commission confirmed during a Tuesday meeting in Manhattan that work will pause next week if the Trump administration doesn't release more than $4 billion in federal funding that was frozen in October. The commission has been using a $500 million line of credit to keep construction going, but those funds are nearly exhausted.
"Pausing construction is the absolute last resort," a commission official stated according to NJ Spotlight News. Workers have already begun "winding down" activities at construction sites in New Jersey and New York.
The infrastructure project, which began construction in November 2023 during President Biden's administration, aims to replace the existing 115-year-old Hudson River rail tunnel that was severely damaged during Hurricane Sandy in 2012. The current tunnel carries over 200,000 daily passengers on Amtrak and New Jersey Transit trains.
Senate Minority Leader Chuck Schumer, who attended Tuesday's meeting, placed blame directly on President Trump. "There is only one person who terminated Gateway, and there is only one person who could get it back on track, and that is President Trump," Schumer said.
President Trump previously described the project as "terminated" amid partisan disputes with Schumer. The Department of Transportation has indicated the funding freeze is related to a review of contracts for compliance with rules governing women and minority-owned businesses.
New Jersey Governor Mikie Sherrill called the funding freeze an "illegal attack on New Jersey" that shows "reckless disregard" for the state's economy. "If the president does not restore funding to this project... he will single-handedly kill nearly 100,000 jobs and $20 billion in economic activity," Sherrill said in a statement reported by Fox News.
The White House pushed back on these claims, with spokesman Kush Desai telling Fox News Digital: "It's Chuck Schumer and Democrats who are standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration."
Regional Plan Association President Tom Wright warned about the long-term consequences during Tuesday's meeting. "Nearly a half million commuters regularly travel from New Jersey to New York every day. They generate over $60 billion a year in wages. They pay roughly $13 billion a year in federal taxes," Wright said, adding that closure of just one existing tunnel would impact all of them.
A 2025 study by the Regional Plan Association estimated the tunnel project's long-term economic benefits at $445 billion through 2060.
The Gateway Development Commission has not announced plans to take legal action, though officials indicated it remains a possibility. Meanwhile, Politico reports that discussions are underway about securing additional funding through the Port Authority of New York and New Jersey to keep construction going.
If the project collapses, it wouldn't be the first time. A previous version reached the groundbreaking stage in 2009 before then-New Jersey Governor Chris Christie pulled state funding in 2010.
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