Gateway Tunnel Project construction will stop if President Trump continues to withhold funds, officials say
Construction on the critical Gateway Tunnel Project linking New York and New Jersey will be halted if President Trump continues to withhold funding, officials said Tuesday.
The Gateway Development Commission announced that money for the project, which is designed to replace and expand the aging rail tunnels damaged by Hurricane Sandy, will run out on Feb. 6.
Pausing construction will result in thousands of layoffs and billions in economic activity lost, officials said, adding there is also the risk of travel delays on one of the most heavily used passenger rail lines in the country.
N.Y., N.J. lawmakers urge White House to restore funding
"Today's announcement by the Gateway Development Commission is just the latest collateral damage of Donald Trump's vindictive quest to hurt New Yorkers no matter the cost. The stakes are enormous: hundreds of thousands of daily commuters, 10,000 union jobs and billions of dollars in economic benefits all now imperiled by Donald Trump's attempts to rip away infrastructure funding from New York," New York Gov. Kathy Hochul said in a statement. "Make no mistake, the Gateway Tunnel is vital to the economy of this state and the entire region, and I will fight like hell to ensure it gets built."
Senate Minority Leader Chuck Schumer told CBS News New York's Marcia Kramer the president runs the risk of hurting himself if he doesn't get the money flowing again.
"His reputation will suffer dramatically. Just like Chris Christie's reputation suffered dramatically 15 years ago when he ended the project. And let me tell you this, Marcia. If these tunnels collapse and people can't get under the Hudson by rail, it will be devastation for New York and New Jersey," Schumer said.
New Jersey Gov. Mikie Sherrill called it "the most urgent and consequential infrastructure project in the country."
Sherrill said the consequences will be significant if Mr. Trump doesn't restore funding.
"He will single-handedly kill nearly 100,000 jobs and $20 billion in economic activity," she said.
The Gateway Development Commission said pausing construction will result in nearly 1,000 jobs being lost. An extended pause would put more than 95,000 jobs and $19.6 billion in economic activity at risk, according to officials.
"It also increases the risk that the 116-year-old North River Tunnel – already a leading cause of delays that impact hundreds of thousands of riders – will shut down," a statement read.
Trump administration issues response
The White House issued a statement blaming Democrats for the funds being withheld.
"It's Chuck Schumer and Democrats who are standing in the way of a deal for the Gateway Tunnel Project by refusing to negotiate with the Trump administration. There is nothing stopping Democrats from prioritizing the interests of Americans over illegal aliens and getting this project back on track," spokesperson Kush Desai said.
Billions of dollars were secured in 2024 to replace the decades-old tunnel, but in October the president said he was going to terminate funding for the project and the Second Avenue subway project, saying they needed to undergo a review that would be delayed by the government shutdown.
Russ Vought, head of the White House Office of Management and Budget, said at the time on social media the federal money for the two projects was to be "put on hold to ensure funding is not flowing based on unconstitutional DEI principles." DEI refers to "diversity, equity and inclusion" policies, which have been top targets of the Trump administration.
"I mean, the project in Manhattan, the project in New York. It's billions and billions of dollars that [Sen. Chuck] Schumer has worked 20 years to get. It's terminated. Tell him it's terminated," Mr. Trump previously said.
Schumer said this is more than "petty politics" as he pushed the president to rethink his decision.
"We can either repair the tunnels now as an example of a forward-thinking investment, or we can repair them on an emergency basis after they are not usable in the wake of a historic crisis, which would raise the stakes and the cost of this project in many ways," Schumer said.