The Gateway Tunnel Project is back on after having federal funding fully restored, according to Gov. Kathy Hochul.
In a social media post, Hochul said the Trump administration released the remaining $127 million in overdue funds after $77 million was restored a day earlier.
“Following our preliminary court victory and my conversation with the President, the Trump Administration has released the remaining $127 million in overdue Gateway Tunnel funding,” Hochul said in her post. “Construction resumes next week.”
What You Need To Know
Gov. Kathy Hochul said construction on the Gateway Tunnel Project will resume next week after the Trump administration released $127 million in overdue funds
The project will build a new rail tunnel under the Hudson River between New York and New Jersey, a key link for roughly 200,000 daily commuters
More than $200 million had been frozen since October, leading to a suspension of the project earlier this month
Advocates have called the $16 billion infrastructure project crucial for the northeast
She went on to call the funding restoration a “major win for worked and commuters.”
“We’ll keep fighting to ensure the federal government meets its commitments,” Hochul added.
More than $200 million had been frozen since October, leading to a suspension of the project earlier this month. About 1,000 workers lost their jobs as a result.
In a statement, the Gateway Development Corporation said it is “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,” the statement reads, in part.
New York and New Jersey sued the Trump administration after it missed a deadline to restart funding.
In a statement, New York Attorney General Letitia James said that her office “will keep fighting in court to save Gateway permanently, on behalf of the millions of workers and riders who depend on it.”
“This funding freeze was unlawful from the start,” James’ statement reads, in part. “We took swift action in court, and now every dollar that was illegally withheld has been released. This morning, New York and New Jersey received the remaining nearly $130 million owed for the Gateway Project, finally unlocking all the funding that had been frozen.”
Advocates have called the $16 billion infrastructure project crucial for the northeast, highlighting extensive damage to the 116-year-old tunnel that occurred during Hurricane Sandy.
President Donald Trump had voiced opposition to the project earlier this week, posting on Truth Social that he opposed it “because it will cost many BILLIONS OF DOLLARS more than projected or anticipated,” adding that “Gateway will likewise be financially catastrophic for the region, unless hard work and proper planning is done, NOW, to avoid insurmountable future cost overruns.”