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Gateway Tunnel Project to pause due to lack of federal funding

Construction on the tunnel will pause next Friday, resulting in the loss of nearly 1,000 jobs.

Matt Trapani

Jan 27, 2026, 5:29 PM

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Officials with the Gateway Tunnel Project are urging the Trump administration to reinstate federal funding. They warn that construction on the new rail tunnel cannot continue without it.

Construction on the tunnel will pause next Friday, resulting in the loss of nearly 1,000 jobs.

Gov. Mikie Sherrill condemned the decision and suggested that the number of jobs impacted could be far greater.

RELATED: Democrats push Trump to support Gateway Tunnel Project

RELATED: Trump indicates the Gateway rail tunnel project has been 'terminated'

"New Jersey will fight tooth and nail for our hard-earned tax dollars and this essential project that will make commutes easier and improve quality of life for residents in the Garden State,” Sherrill wrote in part.

NJ Transit president and CEO Kris Kolluri also weighed in on the decision.

"We talk about how customers are frustrated because they don't think our trains can run on a reliable schedule. Well, imagine if the tunnels that currently exist don't work at all. That is how we have to look at this,” he said.

Funding for the project was originally terminated last year due to the government shutdown. But the funding was never reinstated after President Donald Trump said he did not approve.

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