![\"President](\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2026\/02\/GettyImages2259775858-51a5b3f1-7ff8-44d5-bc17-aa34b7f746f8.jpg\")
<\/p>\nNEW YORK (BLOOMBERG) — The federal government won\u2019t cover any cost overruns on a $16 billion Hudson River rail tunnel project for which the White House previously froze funding, President Donald Trump warned on Monday.<\/p>\n
Trump, in a post on his Truth Social platform, urged authorities to \u201cavoid insurmountable future cost overruns\u201d and offered meetings to ensure the project does not go above budget.<\/p>\n
\u201cPlease let this statement represent the fact that, under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS – NOT ONE DOLLAR!\u201d Trump wrote.<\/p>\n
His administration halted funding for the project in October, citing a new Department of Transportation rule that bans race or gender-based contracting requirements. Gateway said it had complied with the department\u2019s regulations.<\/p>\n
The freeze occurred as a clash over health-insurance subsidies between Trump and Democrats, including Senate Minority Leader Chuck Schumer of New York, had led to a government shutdown.<\/p>\n
<\/p>\n
President Donald Trump speaks during a bill signing in the Oval Office of the White House on Feb. 3, 2026.<\/p>\n
Photo credit Alex Wong\/Getty Images<\/p>\n
The Gateway Development Commission, which oversees the project, declined to comment on Trump\u2019s post. The White House didn\u2019t immediately respond to a request for comment.<\/p>\n
New Jersey and New York previously won a temporary court order blocking the freeze. A judge said federal funding should resume by Tuesday.<\/p>\n
Gateway would add train capacity between New Jersey and Manhattan by building a new two-tube tunnel and upgrading the existing North River tunnel, which is more than 100 years old.<\/p>\n
Earlier: NY-NJ Tunnel Funds Frozen by Trump Administration to Resume<\/p>\n
\u201cThe only person who can make Gateway a boondoggle is Donald Trump,\u201d New Jersey Governor Mikie Sherrill said in a statement. \u201cUntil his illegal actions forced the project to shut down, threw 1,000 hard-working men and women off the job, and threatened the commutes of 200,000 people a day, Gateway was on time and on budget.\u201d<\/p>\n
In his social post, Trump again rejected reports that the White House had told Schumer that the holdup could end if he supported renaming New York\u2019s Penn Station and Washington Dulles International Airport after the president.<\/p>\n
\u201cThe naming of PENN Station (I LOVE Pennsylvania, but it is a direct competitor to New York, and \u201ceating New York\u2019s lunch!\u201d) to TRUMP STATION, was brought up by certain politicians and construction union heads, not me – IT IS JUST MORE FAKE NEWS!\u201d Trump said in the post.<\/p>\n