Trump releases Gateway Tunnel funding, work can resume next week
Governor Hochul rallied with construction workers at the Gateway Tunnel site on Tuesday. Photo courtesy of Darren McGee/ Office of Governor Kathy Hochul on Flickr
President Donald Trump has released the remaining federal funding for the Gateway Tunnel project, allowing work to resume on the new rail tunnel connecting New York and New Jersey next week, Gov. Kathy Hochul announced on Wednesday. In a statement, the governor said “preliminary court victories and repeated conversations” with the president pushed the federal government to release the remaining $127 million in overdue funding for the $16 billion project.
Federal funding for the project stopped in October during the government shutdown and was never resumed despite a previous $12 billion commitment made under the Biden administration, as 6sqft previously reported.
The release of funds follows two lawsuits filed last week by the Gateway Development Commission and New Jersey and New York.
Hochul said the 1,000 workers who have not worked since February 6, when the funding ran out, will be able to return next week.
“I have told the President repeatedly that when he targets New York, we will fight back and we will not back down,” Hochul said in a statement. The governor said she wants guarantees from the Trump administration that the project will be fully funded.
“Today’s progress is significant, but we need certainty that Gateway funding will remain in place for the duration of the project. The federal government has a legal obligation to fully fund Gateway, and New York will accept nothing less.”
According to Politico, the White House paid a total of $235 million over three installments, including $205 million the federal government owed to Gateway and $30 million in reimbursements from work completed in January.
“Gateway Development Commission (GDC) has received the full reimbursement owed to us from the federal government and now has more than $205 million available to fund work on the Hudson Tunnel Project,” the GDC wrote in a statement.
“We are working with our contractors to deploy these funds to resume work as soon as possible. Letters will be sent to contractors today, and construction activities are expected to resume next week. We continue to pursue all avenues to secure access to the full amount of federal funding for the Hudson Tunnel Project, including our lawsuit.”
This past Monday, Trump ranted against Gateway on his social media platform Truth Social, calling the project “financially catastrophic” for the area and claiming the federal government will not be responsible for “any cost overruns.” He also said it was not his idea to rename Penn Station after himself in exchange for funding, as 6sqft and other outlets had reported.
The president wrote online:
“Also, the naming of PENN Station (I LOVE Pennsylvania, but it is a direct competitor to New York, and “eating New York’s lunch!”) to TRUMP STATION, was brought up by certain politicians and construction union heads, not me – IT IS JUST MORE FAKE NEWS! NO COST OVERRUNS!!!”
Politico reported that Hochul spoke with Trump by phone on Monday following the Truth Social post and told him the project was on budget and on schedule. The funding was released in full on Wednesday.
RELATED:
