Work resumes on the Hudson River rail tunnel project, but NJ Transit delays continue
A thousand workers are expected to be back on the job after a federal judge ordered the Trump administration to unfreeze billions of dollars to fund construction.
A tunnel is under construction in Manhattan that will connect the Hudson River rail tunnel to New York Penn Station on Thursday, Oct. 2, 2025, in New York. (AP Photo/Ted Shaffrey)
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The Gateway Development Commission resumes construction this week on the new Hudson River rail tunnel connecting New Jersey and New York. The commission halted work on the project on Feb. 6 due to a federal funding freeze, forcing almost 1,000 workers off the job after the agency ran out of money. On Feb. 18, the agency issued a statement saying officials had received $200 million, clearing the way to restart construction on the massive project, which includes a new rail tunnel and the rehabilitation of the existing Hudson River rail tunnel, built in 1910 and requiring constant maintenance to remain open.
How did we get here?
Congress approved full funding to complete the project, but a directive from President Donald Trump on Oct. 15 froze the money. Earlier this month, a federal judge ruled that the Trump administration must release the billions of dollars so work can resume. Four days before the work stoppage, the Gateway Development Commission filed a breach of contract lawsuit against the federal government in the U.S. Court of Federal Claims.
Officials in New Jersey and New York also filed a lawsuit, accusing the Trump administration of illegally withholding the $15 billion that had been approved by Congress.
Why were the funds frozen?
Last fall, after Senate Democrats rejected a proposal to end the government shutdown unless the Trump administration reinstated health care subsidies for low-income residents, Trump announced he was canceling the Gateway project, saying it was one of the programs that his administration “didn’t like.”
Two weeks later, U.S. Transportation Secretary Sean Duffy said his staff members were on furlough because of the government shutdown and announced that the project was under review.
What’s been done so far?
Even after federal funding was paused in October, construction activity continued. The Gateway Development Commission said in a statement that they have:
- Made significant progress on an area known as the portal launch box, which sets the stage for tunnel boring to begin in New Jersey later this year.
- Procured two boring tunnel machines.
- Mixed 84 primary columns and 112 secondary columns of reinforced earth in the Hudson riverbed, bringing the total number of finished columns to 838.
- Installed 29 slurry wall panels for the Hudson County Access Shaft, and 15 panels for the Second Avenue Access Shaft. The Hudson County Shaft slurry wall is now more than 75% finished.
More headaches for NJ commuters bound for NYC
Work on the new Hudson River rail tunnel project won’t be completed until 2035, but New Jersey commuters who take a train into New York are facing a more immediate problem for at least the next three weeks.
Trains that go into Manhattan must cross the Portal Bridge before going into the existing Hudson River rail tunnel. Work to transfer part of the rail track onto the new Portal Bridge is causing major delays and cancellations for several NJ Transit lines, including the Northeast Corridor, Morristown, Gladstone and Montclair–Booton lines. Amtrak trains are also impacted.
NJ Transit Executive Director Kris Kolluri said scheduled rail service will be reduced by about 50% until March 15, when the track transfer work is anticipated to be completed.
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