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Construction activity on one of the nation’s largest infrastructure projects may grind to a halt next week if federal dollars don’t flow again.
The Gateway Development Commission said Tuesday it was working on the The Hudson Tunnel project will be halted on Feb. 6 if disbursements of federal funding do not resume within the next few days, according to a news release. The commission told contractors to end work at active jobsites in New York and New Jersey.
“Since federal funding stopped in October, we’ve done everything we can to keep construction moving forward as planned,” GDC CEO Thomas Prendergast said in a statement. “But we cannot finance this work on credit indefinitely.”
A break in construction on February 6 would result in the immediate loss of nearly 1,000 jobs, according to the GDC. An extended pause would put roughly 11,000 construction jobs at risk in addition to the $19.6 billion in economic activity the overall construction project would generate.
A freeze affects four other major purchases including the remaining construction packages for the new tunnel. Two construction packages involving the Hudson River Tunnel Project and the New Jersey Surface Alignment Project were scheduled to begin this year, but contracts cannot be awarded until funding resumes, according to the GDC.
Federal grants account for approximately $12 billion of the Hudson Tunnel project, or 70 percent of its $16 billion budget. USDOT Build American Bureau loans, to be repaid by the states of New York and New Jersey and the Port Authority of New York and New Jersey, are financing the other $4 billion, according to the GDC.
The funding problems began on September 30, 2025, when the GDC received notification from the Federal Transit Administration that federal disbursements under the Capital Investment Grant Program would be halted pending a review by the Commission. federally mandated disadvantaged business enterprise program. The next day, October 1, all federal funding for the Hudson Tunnel project was halted.
The Trump administration has waged war on diversity programs and has directed funding to areas run by Democrats. For example, in October, the Department of Energy canceled $7.56 million in funds, largely in blue states.
However, immediately following the administration’s announcement of funding for the Gateway program at the time, construction did not stop.
Construction crews from New York City’s Gateway Program continued to pour concrete after the announcement. Los Angeles-based Tutor Perini, the project’s general contractor, told Construction Dive that the company was “unaware of any change in focus” and would continue to work on site.
Tutor Perini declined to comment on Tuesday’s announcement.
The GDC used other available sources of funding and credit to keep the project moving forward. Indeed, since October 1st, the crews have achieved remarkable milestones. This includes:
- The completion of the Tonnell Avenue bridge.
- Two large concrete pours totaling over 7,200 cubic yards for the Hudson Yards concrete shell.
- 29 slurry wall panels for the Hudson County Access Shaft to reach 75% completion.
- 15 panels for the 12th Avenue access shaft.
- The hiring of two massive tunnel boring machines.
But that progress will now presumably come to a halt.
“Stopping construction is the absolute last resort,” Prendergast said in the statement. “We will continue to work around the clock to secure funding so that the workers who count on this project to pay their bills can continue to work and continue to provide the reliable 21st century infrastructure that America needs.”
The announcement was strong reviews of the New York Building Congressa membership coalition of more than 500 organizations and 250,000 skilled tradespeople and professionals in the New York City area.
“The Gateway Development Commission’s announcement today of a potential construction pause is a four-alarm fire that demands immediate attention from an administration that claims to want to be the biggest builders this nation has ever seen,” NYBC President and CEO Carlo Scissura said in a statement. “The Hudson Tunnel project is the nation’s most urgent infrastructure project, and federal funding must be restored to keep construction underway.”
Scissura urged the Trump administration to resolve the matter sooner rather than later.
“Infrastructure should never be seen as partisan or political. It’s for everyone,” he said in the statement. “Our federal leaders must understand this and act now to fully restore funding for this vital project.”
