Gateway Development Commission announced Feb. 18 that the federal government has released the remainder of the $205 million in funding for the Hudson Tunnel Project.
“Gateway Development Commission (GDC) has received the full reimbursement owed to us from the federal government and now has more than $205 million available to fund work on the Hudson Tunnel Project,” the GDC said in a statement.
“We are 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. We continue to pursue all avenues to secure access to the full amount of federal funding for the Hudson Tunnel Project, including our lawsuit.”
The latest development follows the announcement on Feb. 13 that the Gateway Development Commission said it received the first disbursement of $30 million from the federal government.
The project had been delayed by federal government concerns about allocation of contracts. In September, the Trump administration froze funding for the project to review “unconstitutional DEI principles.” Gateway said it has complied with the administration’s inquiries about how the contracts were awarded.
Since then, the funding has been tied up in court. Gateway officials and project advocates have said the project needs consistent, reliable access to the Hudson Tunnel Project’s federal funding going forward.
“It is great news that the money has been released for the Gateway Project,” said Danielle Zanzalri, assistant professor of economics at Seton Hall University. “However, the president has vowed to continue challenging the project, so political risk remains. Ongoing legal challenges keeps uncertainty around, which unfortunately affects long-term planning, contractor pricing, and overall project costs.”
The Gateway Development Commission said nearly $2 billion has already been spent on the $16 billion project, which would add a second tunnel by 2035 to expand access for Amtrak and New Jersey Transit commuter trains to lower Manhattan. About 1,000 people are working on the project.
While visiting Advanced Solar Products in Flemington, Gov. Mikie Sherrill was asked about the release of the funds and the battle with the Trump administration over financing the Hudson Tunnel Project.
“We have seen the funds released and he continues to remain in court – but we’re just seeing again and again that what he’s doing is illegal,” she said. “And the worst part about it is now, he’s probably cost the project, which was on time and on budget, millions of dollars by halting all this work.”
David Rible, chief executive officer of the Wall-based trade association Utility and Transportation Contractors Association, looked forward in a statement. “Now, at least, we can move on and resume the necessary work of building Gateway,” he said. “This is the most important infrastructure project of our lifetime and should never be held up by gamesmanship again.”
