President Donald Trump doubled down on his surprise announcement last week that he has canceled the $16 billion Gateway project to build two new rail tunnels under the Hudson, telling reporters on Air Force One this week that it is permanently canceled.
Concerns about the future of the $16 billion project have bubbled up from Main Street to Congress.
Cranford Township Commissioner Kathleen Prunty said she’s heard concerns from a Realtor because families have moved there because the new tunnels would create a direct NJ Transit rail commute to New York City possible.
“Loads of young families have moved in. The promise of a one-seat ride to New York is what they’re holding on to,” she said. “People are thinking about this in their every day lives.”
Prunty was part of a bipartisan virtual roundtable meeting held Wednesday by U.S. Sen. Andy Kim (D-N.J.), U.S. Rep. Rob Menendez (D-8th dist.) and U.S. Rep. Nellie Pou (D-9th Dist.), and representatives of residents, commuters, and workers affected by the termination of the project.
Called the largest infrastructure project in the country, five parts of Gateway’s Hudson River Tunnel project have been under construction for more than a year. If completed, it will provide capacity for Raritan Valley Line and other NJ Transit trains to travel directly to New York.
But Gateway is in state of flux after Trump made an announcement during an Oct. 15 press conference that the U.S. Office of Management and Budget Director Russell Vought is “terminating a tremendous number of Democrat projects.”
Trump did not mention Gateway by name, only referring to $20 billion in Manhattan projects that U.S. Sen. Chuck Schumer (D-N.Y.) fought for.
Schumer is leading the Democrats’ effort to win back federal tax support for millions of people covered by the Affordable Care Act, which led to a government shutdown.
Trump reiterated the termination in a video where he spoke to reporters about Gateway on Air Force One on Oct. 19, saying “right now there is no funding” because “it’s up to me.”
Adding to the confusion is the lack of any more information from the USDOT or Federal Transit Administration.
Kim also said there has been “complete and utter silence” from the administration about Gateway, including a request to meet.
“It’s very upsetting and we deserve an answer,” he said. “We need clarity on what the president meant. We’ve been asking as a delegation.”
The congressional delegation also wants to reiterate to the Trump administration “what’s at stake economically and nationally” if Gateway is canceled.
The bipartisan Raritan Valley Line Mayors Alliance said local economies along the rail line will be affected because redevelopment has already begun in anticipation of the tunnel bringing direct service to and from New York.
“We are Democrats and Republicans united in opposition to defunding or terminating Gateway,” said Fanwood Mayor Colleen Mahr, a co-founder of the alliance.
Thousands of residential apartments and townhomes have been built in towns along the train line in anticipation of Gateway. Dunellen Mayor Jason F. Cilento is concerned that canceling Gateway will adversely affect the economies of those towns.
“The investments we made on the ground have been impetus for economic growth, with the unknown (about Gateway) what will happen in our local economies? This is not the time for partisan politics.”
One immediate concern is for the 11,000 construction workers at five Gateway projects and how long work can continue since federal reimbursements were stopped on Oct. 1.
“We’re following the bouncing ball,” said Mike Hellstrom, vice president and Eastern Regional Manager of the Laborers’ International Union of North America. “There is a level of uncertainty.”
Gateway Development Commission officials said they haven’t received any notification. The White House and the federal Office of Management and Budget have not responded to NJ Advance Media questions about the next step for Gateway.
The $16 billion project is being funded with $11 billion in federal funding from a variety of sources. The remainder is provided by New Jersey, New York and Amtrak.
The largest grant was a record setting $6.8 billion full funding grant agreement between the Federal Transit Administration, New York, New Jersey and Amtrak.
That agreement was described by officials in 2024 as a contract between the FTA and the states that could only be broken if the states failed to meet the contractual obligations in the agreement.
Based on other claw backs of transportation infrastructure funds awarded during the Biden administration, Jeff Davis, a senior fellow at Eno Center for Transportation think tank, said he expects a court fight.
“If (US) DOT attempts to de-obligate money that was already legally obligated, GDC or Port Authority or NY or NJ could file suit in federal court and object, Davis said.
California sued the Federal Railroad Administration in July after it “de-obligated” a $4 billion grant to build a controversial high speed rail line that was committed to by the Biden Administration, he said.
The possibility of a lawsuit could happen depending on who is elected the next governor.
U.S. Rep. Mikie Sherrill (D-11th Dist.), who is running for governor, pledged to sue the federal government if elected during an Oct. 16 press conference.
Sherill expressed concern about lost union jobs, the effect on the regional and nation economy if an old tunnel must be shut down and the estimated cost of $1 million a day if the project is delayed.
Her opponent, Republican Jack Ciattarelli said on X that he would fight for Gateway, but did not say if that included suing.
Kim said the congressional also are looking at litigation, if needed. “I’d prefer not to go there. it would cause delays,” he said.
One frustration is the House of Representatives hasn’t been in session so there is no one to negotiate with about Gateway or the federal shut down, Kim said.
“We all are pressing hard to make sure we can get answers,” Kim said. “I won’t feel at ease until I see trains going through the (new ) tunnel.”
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