NY-NJ Rail Tunnel Work May Halt Again Without Federal Funds (1)

March 10, 2026, 4:02 PM UTC

The agency building a $16 billion rail tunnel under the Hudson River warned Tuesday that construction will halt again within two to three months unless the Trump administration resumes funding, following a February shutdown after the US Department of Transportation withheld promised money.

The new tunnel would link New Jersey and Manhattan and serve Amtrak and New Jersey Transit trains, while the existing rail tube, which opened in 1910, needs rehabilitation. The Transportation Department has withheld project funds since October. Gateway sued last month to release the money, and New Jersey and New York filed a similar lawsuit.

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