On Wednesday, President Trump announced that the Gateway Tunnel project linking New Jersey and New York has been terminated, casting new doubt on one of the nation’s most significant transportation undertakings.
The announcement follows a freeze on $18 billion in federal transit funding, announced by OMB Director Russ Vought earlier this month. The funding freeze halted work on both the Hudson Tunnel Project and New York’s Second Avenue Subway extension. Following the announcement, experts pointed out that freezing congressionally appointed funds is un-constitutional.
Now, the Trump admin is doubling down—but will it amount to anything?
The declaration came amid an ongoing government shutdown that began when the Republican-led Congress failed to pass a spending resolution. Trump said the decision to terminate the Gateway Tunnel Project was part of a broader effort to cut Democratic-backed programs. It is unclear whether the administration has the ability to permanently defund the project. Construction on the Hudson Tunnel continues despite President Trump’s announcement.
The Gateway program, valued at roughly $16 billion, is designed to build a new two-track tunnel beneath the Hudson River and rehabilitate the aging North River Tunnel that carries Amtrak and NJ Transit trains between Secaucus and Manhattan. The North River Tunnel, more than a century old and damaged during Hurricane Sandy in 2012, is the only passenger rail link between New Jersey and New York. Hundreds of thousands of NJ commuters rely on it daily.
Earlier this month, the Office of Management and Budget suspended federal funding for major infrastructure projects in the region. The freeze, ordered by Director Russell Vought, was tied to a review of diversity, equity and inclusion requirements in federal contracts. The move immediately halted funding for the Hudson Tunnel and Second Avenue Subway.
New Jersey and New York officials condemned the decision, describing it as an act that jeopardizes the regional economy. They argued that both projects have long held bipartisan support and have been years in the making.
Federal funding had already been approved by Congress, and the sudden freeze created uncertainty for contractors, workers, and transportation agencies relying on the money to continue work. Refusing congressionally appointed funds is illegal.
The Gateway project has faced years of political and financial challenges. It was first proposed after then-Governor Christie canceled an earlier version of the plan in 2010. Since then, rising costs, environmental reviews and other factors have delayed progress.
The administration’s move also highlights the broader effects of the federal shutdown. Agencies across Washington have begun reducing operations, with additional budget cuts expected in the coming weeks. The Office of Management and Budget indicated that further reviews could target other infrastructure programs tied to Democratic-led states—suggesting that programs are targeted for inherently political reasons.
The situation leaves the Gateway Tunnel project at a crossroads. Although construction work continues under existing contracts, the uncertainty over federal participation could stall future phases of the effort, including the tunnel rehabilitation and associated track improvements in New Jersey.
New Jersey congressional members have vowed to fight the termination.
If funding is not reinstated, transportation officials warn that delays, service reductions and higher maintenance costs are likely. The North River Tunnel currently handles more than 400 trains a day.
For now, the fate of the Gateway project remains uncertain. The announcement marks the second major challenge to the tunnel plan in less than a decade, reviving a long-running debate over federal responsibility for one of the country’s most vital infrastructure links.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.