A long-running shoving match over the fate of a $16 billion train tunnel between New Jersey and New York has spanned three presidents.
The Trump administration is freezing billions of dollars for a new train tunnel between New Jersey and New York City, linking it to a DEI probe and the federal government shutdown – a move that has sparked a fierce backlash from several Democratic lawmakers.
White House budget director Russell Vough announced Wednesday that “roughly $18 billion” in federal funds have been put on hold for two major infrastructure projects in New York.
One of the projects is the Second Avenue Subway line, an ongoing effort to expand subway service in New York City that entered its second phase of construction last month. Read More: Trump Axes $18B For NYC Projects, Including 2nd Ave Subway
The other project will have a major impact on New Jersey as well as New York: a long-awaited, new train tunnel across the Hudson River.
The so-called “Gateway Tunnel” is the centerpiece of a larger construction effort dubbed the Gateway Program, which aims to take some pressure off one of the most notorious railway chokeholds in the nation: the Northeast Corridor. Learn more about the project here.
The new tunnel is especially crucial to the region, as the existing North River Tunnel serving Penn Station is more than 110-years-old and was severely damaged during Superstorm Sandy in 2012. While the tunnel has been repaired frequently, its age and damaged condition have caused constant headaches for more than 200,000 people who travel through the tunnel on more than 400 trains every weekday.
Construction on the new tunnel started on both sides of the Hudson River in November 2023. It will serve NJ Transit and Amtrak trains.
The $16 billion cost is being split between the federal government and the project’s three local partners: New York, New Jersey, and the Port Authority of New York and New Jersey.
According to Vough, the funding is being put on hold to ensure that it is not flowing based on “unconstitutional DEI principles” – a stance that has been a hallmark of the administration of President Donald Trump.
The move is expected to see a challenge in court.
Vough said more information will be coming from the U.S. Department of Transportation, which issued the following statement on Wednesday:
“The USDOT issued an interim final rule barring race- and sex-based contracting requirements from federal grants. Secretary [Sean] Duffy’s position on the Disadvantaged Business Enterprise (DBE) program is clear – subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources … The department is focusing on these projects because they are arguably the largest infrastructure initiatives in the Western Hemisphere, and the American people want to see them completed quickly and efficiently.”
The federal agency also pointed the finger at “radical Democrats” for their alleged role in the ongoing federal government shutdown.
“Until the USDOT’s quick administrative review is complete, project reimbursements cannot be processed, including a $300 million disbursement for the 2nd Avenue Subway,” the agency stated. “The remaining federal funding for these projects totals nearly $18 billion. Thanks to the Chuck Schumer and Hakeem Jefferies shutdown, however, the USDOT’s review of New York’s unconstitutional practices will take more time. Without a budget, the department has been forced to furlough the civil rights staff responsible for conducting this review. This is another unfortunate casualty of radical Democrats’ reckless decision to hold the federal government hostage to give illegal immigrants benefits.”
Republicans crafted a short-term measure to fund the government through Nov. 21, but Democrats insisted the measure address their concerns on health care. They wanted to reverse the Medicaid cuts in Trump’s “Big, Beautiful Bill” and extend tax credits that make health insurance premiums more affordable for people who purchase through the marketplaces established by the Affordable Care Act – otherwise known as “Obamacare.”
Undocumented immigrants are ineligible for federal health coverage or access to the Federal Health Insurance Marketplace under the Affordable Care Act.
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‘TRUMP’S FABRICATED CULTURE WAR’
Several New Jersey Democrats lashed out at the Trump administration after hearing of the funding freeze.
“Halting the Hudson Tunnel project over Trump’s fabricated culture war will sabotage thousands of New Jersey commuters,” U.S. Rep. Frank Pallone Jr. said.
Pallone accused Trump of having a “history of obstruction” against this project, which the congressman described as the “backbone of the entire Northeast Corridor.”
“This is about whether trains run safely and on time, whether workers get to their jobs, whether businesses can function, and whether the American economy keeps moving,” Pallone said. “Any partisan move to stop this project is an attack on New Jersey residents and the economic engine of our region.”
U.S. Rep. Josh Gottheimer called Wednesday’s announcement a “joke.”
“Donald Trump’s attack on the Gateway Train Tunnel is not only an assault on mass transit, but it’s also an attack on the economy, labor, and American competitiveness,” Gottheimer commented.
“Enough chaos – time for a little common sense,” Gottheimer said.
U.S. Rep. Mikie Sherrill, who is running for governor as a Democrat against Republican nominee, Jack Ciattarelli, blasted the White House for “attacking” the Gateway Tunnel, which she has advocated for in the past.
“As governor, I will fight this tooth-and-nail and sue the Trump administration to finish this critical, job-creating infrastructure project to reduce congestion and improve quality of life in New Jersey,” Sherrill wrote.
Patch reached out to Ciattarelli’s campaign team seeking comment about Wednesday’s announcement on the Gateway Tunnel. We will update this article with any reply we receive.
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The Gateway Development Commission – a government-sponsored authority that is overseeing the Gateway Program – said it has received notice from the Federal Transit Administration (FTA) about a pause in disbursements for the Hudson Tunnel.
“The [commission] complies with all federal laws and regulations, and will continue to do so throughout the project,” CEO Thomas Prendergast said. “We look forward to continuing our productive relationship with the administration, FTA, Federal Railroad Administration, and the U.S. Department of Transportation.”
“In the meantime, we remain focused on keeping the project on scope, schedule and budget,” Prendergast said.
See Related: Who Will Pay For New Train Tunnel In NJ, NY? Feds Up Their Ante
See Related: WATCH: Work Continues On New Train Tunnel Between NJ, NY
PAYING FOR GATEWAY
The Gateway Program was greenlighted during the administration of former President Barack Obama. It hit a brick wall when Trump took office for his first term, but picked up steam again when Joe Biden entered the White House.
In 2022, the governors of New York and New Jersey signed a written agreement that guarantees a 50-50 split when it comes to funding their portion of Gateway. Read More: NY/NJ Governors Sign Agreement To Split Cost Of Gateway Tunnel
New Jersey Gov. Phil Murphy and New York Gov. Kathy Hochul said they would work to “aggressively” chase more federal funding through Biden’s landmark infrastructure package. Read More: Here’s What NJ Will Get From $1 Trillion Infrastructure Bill
In the past few years, several major infusions of federal dollars for the Gateway Program have been announced.