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Gateway tunnel work expected to resume next week after full federal reimbursement

About 1,000 workers were furloughed earlier this month when the Trump administration cut off the funding.

Matt Trapani

Feb 18, 2026, 5:37 PM

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The Gateway Development Commission says that it has received the full $205 million in reimbursement funds owed for the Hudson River rail tunnel project.

About 1,000 workers were furloughed earlier this month when the Trump administration cut off the funding.

New Jersey Gov. Mikie Sherrill and New York Gov. Kathy Hochul sued the administration for the funding and won.

[twitter] https://twitter.com/GovSherrillNJ/status/2024180797146550286 [/twitter]

The commission says that letters were expected to be sent to contractors on Wednesday. Construction activities will resume next week.

“We took [Trump] to court because I care deeply about jobs and the economy, even if the federal government doesn’t seem to. So, I took him to court: we won. He fought it again: we won. We have seen the funds released and he continues to remain in court – but we’re just seeing again and again that what he’s doing is illegal,” Sherrill said during a media availability.

RELATED: Trump slams Gateway tunnels as boondoggle, vows no federal funding for overruns

RELATED: Laborers at Gateway construction site rally while Trump refuses to pay for project

Hochul said the funding is a “major win for workers and commuters.”

“We’ll keep fighting to ensure the federal government meets its commitments,” she wrote on X.

[twitter] https://twitter.com/GovKathyHochul/status/2024143896897364009 [/twitter]

Trump slammed the Gateway project on Monday by calling it a “boondoggle.” He claimed that it will cost billions of dollars more than projected.

“Please let this statement represent the fact that, under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS - NOT ONE DOLLAR!” the president wrote on Truth Social.

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