Construction of the Hudson Tunnel Project – halted on February 6 because the federal government withheld funds – is to restart this week.

The Gateway Development Commission (GDC) is funding this construction work using approximately US$235m released by the Trump administration earlier this month.

Nearly 1,000 jobs that were impacted by the construction pause will be restored.

“Hundreds of workers will return to GDC’s construction sites in New York and New Jersey. This is great news for these workers, the hundreds of thousands of riders who take the train to New York City every day, and the entire region, but we cannot take our eyes off the ball. We need every federal dollar accounted for in our grant and loan agreements to build this tunnel,” said Alicia Glen, New York GDC commissioner and co-chair said.

“I’m grateful for the many elected leaders, including Leader Schumer and Governor Hochul, who have fought for the project, as well as the united front of business and labour leaders, construction workers, civic and industry groups, transportation advocates, and community members who support this vital investment in our region. Your advocacy has made it possible for us to resume work, and together we will get this tunnel built.”

New Jersey GDC commissioner and co-chair Balpreet Grewal-Virk said in recent weeks there had been “a massive surge of support” for the project.

“We are incredibly thankful for Governor Sherrill, New Jersey’s congressional delegation, and the many other leaders who have called on the Administration to stop delaying the most urgent infrastructure project in the country. We’re seeing the results of this effort now, as hundreds of workers go back to our construction sites. I look forward to celebrating the launch of our tunnel boring machines through the Palisades once GDC has assurance it will receive the steady flow of funding needed for this megaproject,” he said.

Construction activities that will advance in the weeks ahead include:

  • Continuing excavation of the TBM launch box.
  • Preparing to assemble the components of the first TBM on site in North Bergen.
  • Co-ordinating the delivery of the second TBM, which is ready for shipment from the manufacturing facility.
  • Continuing slurry wall installation for the 12th Avenue Access Shaft and beginning excavation of the Hudson County Access Shaft.
  • Constructing a marine platform for work associated with the Manhattan Tunnel.
  • Continuing ground stabilisation in the Hudson River.
  • Conducting site clearing work to prepare for the New Jersey Surface Alignment Project.

While work on GDC’s active construction projects resumes, two major procurements for work on the Hudson River Tunnel and New Jersey Surface Alignment contracts will remain on hold until GDC regains access to all US$15bn in federal grants and loans that has been paused since October 1, 2025. Both of these contracts were scheduled for award in late 2025/early 2026.

The HTP is an urgent investment in America’s passenger rail network that involves building a new train tunnel connecting New York and New Jersey and rehabilitating the existing tunnel, which has been in service since 1910 and is a source of chronic delays for hundreds of thousands of daily riders. More than US$1bn has been invested in construction of the HTP since ground broke in 2023.

The HTP is funded by fully executed federal grant and loan agreements between the US Department of Transportation and GDC. GDC says it continues to co-operate with its federal funding partners while exploring all avenues for restoring full funding for the HTP to ensure it is delivered on scope, schedule, and budget.