Politics January 27, 2026

Work on $17.2 Billion Hudson River Tunnel Set to Stop Unless Funding Restored by Feb. 6

Lawmaker says Trump administration's funding suspension will pause construction next week unless previously approved funds are reinstated

By Avery Klein
Work on $17.2 Billion Hudson River Tunnel Set to Stop Unless Funding Restored by Feb. 6

Federal suspension of financing for a $17.2 billion Hudson River tunnel project means crews will halt work on Feb. 6 unless the Trump administration reverses its decision, a New Jersey congressman said. The tunnel, a replacement for infrastructure damaged in 2012, links New York City and New Jersey and serves a region responsible for 10% of U.S. economic output.

Key Points

  • Federal funding for the $17.2 billion Hudson River tunnel has been suspended by the current administration.
  • Representative Josh Gottheimer warned construction will be halted on Feb. 6 unless previously approved funds are restored.
  • The existing tunnel was heavily damaged during Hurricane Sandy in 2012; the metropolitan region served accounts for 10% of U.S. economic output.

The federal government's move to suspend funding for the $17.2 billion Hudson River tunnel project will force construction to stop next week unless the administration restores the dollars that had been approved under the prior administration, officials said.

President Donald Trump announced in October that he had "terminated" the project. Representative Josh Gottheimer, a Democrat from New Jersey, stated on Tuesday that, unless the president reverses course, the effort to build the new tunnel connecting New York City and New Jersey will be suspended on Feb. 6.

The tunnel is intended to replace the existing Hudson River crossing, which suffered significant damage during Hurricane Sandy in 2012. Officials and lawmakers have warned that any failure of the current tunnel would severely disrupt commuting across the metropolitan area, a region the article states produces 10% of the country’s economic output.

Project backers had expected funding to continue after sums were approved and funded during the administration of former President Joe Biden. The suspension announced by the present administration has left the schedule for construction vulnerable to an immediate stoppage unless federal financing is restored.

Details provided by the lawmaker indicate a clear cutoff date for work to continue: Feb. 6. That deadline is tied directly to the status of federal funding, and the statement from the representative frames the matter as contingent on an administrative decision to reinstate previously allocated funds.

The reporting underscores the stakes for transit between New York and New Jersey, which depends on reliable rail infrastructure. The replacement tunnel has been presented as a critical link for commuters and regional mobility; the existing tunnel’s damage from Hurricane Sandy in 2012 is cited as a reason for pursuing the new build.

No additional timelines, contingency plans, or alternative funding sources were detailed in the material provided. The public statements referenced focus on the funding suspension and the single date by which construction would pause if federal support is not restored.


Key points

  • The federal government suspended funding for the $17.2 billion Hudson River tunnel project.
  • Representative Josh Gottheimer said construction will be suspended on Feb. 6 unless funding approved under the prior administration is restored.
  • The current tunnel was heavily damaged by Hurricane Sandy in 2012; the metropolitan area served by the tunnel accounts for 10% of U.S. economic output.

Risks and uncertainties

  • Construction stoppage risk: Work is scheduled to be paused on Feb. 6 if federal funding is not reinstated.
  • Infrastructure vulnerability: Continued reliance on the existing tunnel, which was heavily damaged in 2012, raises the possibility of significant commuting disruption if it fails.
  • Regional economic exposure: The metropolitan area linked by the tunnel produces 10% of the nation’s economic output, highlighting potential economic sensitivity to disruptions in cross-Hudson transportation.

Risks

  • Work stoppage scheduled for Feb. 6 if federal financing is not reinstated - impacts construction and infrastructure sectors.
  • Potential for major commuting disruptions if the existing Hudson tunnel were to fail - impacts transportation and regional economic activity.
  • Uncertainty over the timing and availability of federal funds approved under the prior administration - impacts public works planning and related contractor schedules.

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