The

Gateway Development Commission

(GDC) yesterday announced construction on the $16 billion Hudson River rail tunnel project is set to resume next week after a more than two-week work stoppage.

The GDC shut down construction work on Feb. 6 in response to an

October 2025 freeze

on previously awarded federal funding. About 1,000 workers were laid off as a result.

The commission, New York and New Jersey officials

sued the federal government

for halting the project's funding and won. On Feb. 13, the Trump administration said the funding would begin to flow again. However, President Donald Trump reiterated

his opposition to the project

in a Feb. 16 social media post.

With funding flowing again, the commission has more than $205 million available to fund construction and anticipates work resuming next week, GDC officials said. The majority of the project's budget is funded by federal grants and loans.

The Hudson Tunnel project calls for constructing and rehabilitating rail tunnel infrastructure under the Hudson River between New York City and New Jersey. The existing 110-year-old tunnel carries over 200,000 daily passenger trips between New York City and New Jersey every weekday, according to the Rail Passengers Association.

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