Hudson River rail tunnel project work set to restart next week

The Hudson River rail tunnel project is expected to restart next week after a pause of more than two weeks, according to Progressive Railroading. Also, the $16 billion effort focuses on tunnel work beneath the Hudson River that connects New York City and New Jersey.

Why Hudson River rail tunnel project work was paused?

GDC halted construction on Feb. 6 after previously awarded federal funding was frozen in October 2025. Meanwhile, the pause led to layoffs affecting about 1,000 workers.

Federal funding freeze, lawsuit, and the latest update

The commission and officials in New York and New Jersey sued the federal government over the funding halt and won. On Feb. 13, the Trump administration said the funding would begin to flow again. Separately, President Donald Trump reiterated his opposition to the project in a Feb. 16 social media post.

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With funding flowing again, GDC officials said the commission has more than $205 million available to fund construction, as noted in a Gateway Development Commission statement. At the same time, they said federal grants and loans make up the majority of the project’s overall budget.

What the Hudson Tunnel project includes?

The Hudson Tunnel project calls for constructing and rehabilitating rail tunnel infrastructure under the Hudson River between New York City and New Jersey. The existing 110-year-old tunnel carries more than 200,000 daily passenger trips between New York City and New Jersey every weekday, according to the Rail Passengers Association.

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