NEW YORK — Work has resumed at all Hudson Tunnel Project sites, the Gateway Development Commission said today, but another halt could come in two to three months if the disbursement of federal funds does not continue.
Additionally, two major contracts that were supposed to be awarded late in 2025 or early this year remain on hold pending final resolution of the federal funding. Those contracts are for construction of the tunnel itself, as well as the surface alignment in New Jersey.
“Our workers are back, and we are moving full steam ahead across all our construction sites, but we will have no choice but to stop work again if the federal government does not continue to disburse the funds that are committed to the project,” said GDC CEO Tom Prendergast. “This project is too important to delay. That’s why we’re doing everything possible to regain consistent and predictable access to all our federal funding so we can keep our workers on the job and deliver the reliable, modern rail transit Americans deserve.”
Work since the start of the year has included completion of bridge and utility relocation at Tonnelle Avenue in North Bergen, N.J., creating space for the launch of two tunnel boring machines; preparations for assembly of the first of those machines; and installation of pipes and an overwater platform for ground freezing work at a bulkhead in Manhattan as part of preparations for future tunnel boring.
More than $200 million in funding withheld since October was released in February by a judge’s ruling [see “Federal government begins releasing …,” Trains.com, Feb. 13, 2026]. Those funds were released while a lawsuit by the states of New York and New Jersey continues; another suit by the GDC is part of its effort to ensure access to the full $16 billion previously committed to the project by the federal government.
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