Hudson Tunnel Project resumes work amid federal funding risk

The basics:

• Construction on Hudson Tunnel Project resumes after release of about $235M in federal funding, restoring nearly 1,000 jobs
• Gateway Development Commission warns work could halt again within two to three months if funding disbursements stop
• Major contracts for Hudson River Tunnel, New Jersey Surface Alignment remain on hold pending full funding access
• Crews continue milestone work including tunnel boring machine preparation, riverbed stabilization, Hudson Yards casing construction

Construction on the Hudson Tunnel Project has resumed. However, the Gateway Development Commission warns the restart could be temporary if federal funding does not continue to flow.

As NJBIZ has reported (see a timeline below), workers have returned to all Gateway Program construction sites in New Jersey and New York that idled earlier this year during a funding freeze. The release of roughly $235 million in federal funds restores nearly 1,000 jobs and allows suspended work to restart.

However, the GDC cautioned that construction could pause again within two to three months if federal funding disbursements do not continue. Two major contracts – for the Hudson River Tunnel and the New Jersey Surface Alignment – also remain on hold until full funding access is restored.

Two court cases continue to play out, as well, on the matter: One from the GDC against the Trump administration and another involving New Jersey and New York against the Trump administration.

Ready to be ‘boring’

“The Hudson Tunnel Project is the most urgent passenger rail project in the country, and GDC’s mission is to deliver it as soon as possible,” said GDC Chief Executive Officer Tom Prendergast. “Our workers are back, and we are moving full steam ahead across all our construction sites, but we will have no choice but to stop work again if the federal government does not continue to disburse the funds that are committed to the project.”

Despite the uncertainty around federal funding, the project has continued to advance in 2026 with several key milestones.

GDC completed the Tonnelle Avenue Bridge and Utility Relocation Project. That work opened space beneath the roadway in North Bergen to assemble and launch tunnel boring machines. Components for the first tunnel boring machine have already arrived at the site and are being prepared for assembly. Meanwhile, the second machine has shipped from the factory. GDC expects parts to begin arriving onsite this month.

Other key construction milestones

Crews also completed installation of the Hudson County Access Shaft slurry wall. The feature forms a watertight underground perimeter ahead of excavation, which expects to begin this spring.

Additional work underway includes installation of pipes and construction of an overwater platform near the Manhattan bulkhead to support ground-freezing operations for future tunneling.

In the Hudson River, a cofferdam was shifted toward Manhattan. Stabilization work on the riverbed has also resumed to prepare for tunnel boring.

Meanwhile, construction continues on the Hudson Yards Concrete Casing – Section 3 tunnel box in Manhattan. Workers poured more than 11,000 cubic yards of concrete at the site for the tunnel floor. Installation of the walls is ongoing.

Prendergast added, “This project is too important to delay. That’s why we’re doing everything possible to regain consistent and predictable access to all our federal funding so we can keep our workers on the job and deliver the reliable, modern rail transit Americans deserve.”