Gateway Tunnel Could Pause in February Without Federal Funding

Construction on the $16 billion Hudson River rail tunnel linking New York and New Jersey could pause in early February if federal funding is not released, risking about 1,000 layoffs and four of five work sites going dark. The Gateway Development Commission’s $500 million Bank of America line of credit is nearly exhausted, prompting talks of a backstop such as a letter of credit from the Port Authority of NY/NJ. The Trump administration has signaled opposition and threatened to defund the project, while federal skeptics say funding remains uncertain despite past pledges from the Biden administration to cover most costs; past stoppages—like New Jersey’s 2009 pull of state funding—highlight the fragility of large-scale infrastructure procurement.