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Work shuts down on Gateway tunnel construction due to lack of funding

On Friday, the money to fund it runs out, unless the president and U.S. Department of Transportation release the $15 billion owed to New York and New Jersey for what’s considered the largest and most important infrastructure project in the nation.

Chris Keating

Feb 5, 2026, 5:44 PM

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Thursday was the last full day of construction on the Gateway tunnel project.

On Friday, the money to fund it runs out, unless the president and U.S. Department of Transportation release the $15 billion owed to New York and New Jersey for what’s considered the largest and most important infrastructure project in the nation.

For 27 months, construction has been taking place at five sites including one, along the Hudson River at 29th Street in Manhattan.

Workers at that location with Local 731 have been working today to shutdown the equipment and secure the site.

Earlier this week, the Gateway Development Commission filed a lawsuit claiming breach of contract on the part of the U.S. DOT in an attempt to have the money released.

In October, President Donald Trump stopped funding during the government shutdown in a move that was largely as a way to punish political rivals in New York.

The DOT said it was investigating DEI hirings at job sites. Gateway officials said they have complied.

Gateway Development officials considered the stop in funding to be a pause not permanent.

On Thursday, News 12 heard from two of the 1,000 workers who will lose their jobs on Friday.

Construction workers who say theywill either look for other jobs or file for unemployment.

“We’re hoping that come tomorrow we can come to some type of agreement that none of these guys get laid off and we get back to work,” said Guido Rivieccio with Local 731.

“It would be a real shame to have to close these gates and lay these booms down on these cranes and send all of our guys home,” said Gulio Petroni with Local 731

On Friday, a federal court judge in the Southern District of New York will consider a lawsuit filed by the governors of New York and New Jersey.

They’re looking for a temporary restraining order which would allow the tunnel project to be paid for.

On Wednesday, the Gov. Mikie Sherrill said the project was being held hostage for political reasons.

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