Trump Administration Releases Final Funds, Gateway Tunnel Construction to Resume Next Week
February 19, 2026
The Trump administration transferred the remaining $127 million in federal funds for the Gateway Tunnel project on Wednesday. This includes extra money beyond the original promise. The move clears the way for construction to restart as early as next week. The $16 billion Gateway project will add more rail tunnels between New York City and New Jersey. It will also fix a century-old tunnel damaged by Hurricane Sandy in 2012. This tunnel serves over 200,000 travelers and 425 trains daily. New York Governor Kathy Hochul announced the release on social media. She wrote, “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. Construction resumes next week. A major win for workers and commuters.” Last week, a federal judge ordered President Trump and Transport Secretary Sean Duffy to restore the funding. The administration plans to challenge this ruling. President Trump had frozen $205 million in reimbursements since October. Reports said Trump demanded that Washington Dulles airport and New York’s Penn Station be renamed after him in return. This sparked harsh criticism from Democrats. The project funds ran out on February 6, stopping all work. Democrats including Governor Hochul and Senate Minority Leader Chuck Schumer had pushed for months to get the funds back. Schumer called it “a huge win for New York, New Jersey, hundreds of thousands of commuters, thousands of union workers, and the economy of the entire region.” He confirmed the federal government added $127 million, raising the total to $235 million. Trump had declared the project “terminated” last year. On Monday, he criticized the project again on his Truth Social platform. He said, “I am opposed to the future boondoggle known as ‘Gateway,’ in New York/New Jersey, because it will cost many BILLIONS OF DOLLARS more than projected or anticipated. Gateway will likewise be financially catastrophic for the region, unless hard work and proper planning is done, NOW, to avoid insurmountable future cost overruns.”
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Tags:
Gateway Tunnel
Trump administration
New york
New jersey
Federal funding
Infrastructure Project
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