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Gateway Tunnel Funding Restored, Construction to Resume Next Week

Court orders forced the release of about $235 million in reimbursements.

Overview

  • New York and New Jersey officials said the administration released three installments — about $30 million, $77 million and roughly $127 million — restoring all withheld reimbursements and allowing the Gateway Development Commission to restart work.
  • The commission confirmed it has the funds in hand, letters to contractors are going out, and construction activities are expected to restart next week.
  • A federal judge ordered payments after the months-long freeze that began in October; an expedited appeal is pending at the Second Circuit with a hearing set for Feb. 23, and a separate claims case also continues.
  • Work paused on Feb. 6 after the project exhausted a line of credit, shutting five sites and leading to roughly 1,000 layoffs, with officials warning of risks to about 200,000 daily Amtrak and NJ Transit riders.
  • President Trump criticized Gateway as a potential “boondoggle,” declared the federal government will not cover any future cost overruns, and denied originating reported proposals to rename Penn Station or Dulles, despite conflicting accounts from his press office.