By rosebell
Considering that the funding for construction of the Hudson Tunnel Project would run out on February 6, the project will pause if disbursements of federal funds do not resume, the Gateway Development Commission (GDC) announced.
Due to this problem, four major procurements that comprise the remaining construction packages for the new tunnel are also impacted by the federal funding pause. While commencing two construction packages, the Hudson River Tunnel Project and the NJ Surface Alignment Project, contracts cannot be concluded until funding resumes.
According to GDC CEO Thomas Prendergast: “Over the past two years, GDC, together with our federal and state partners, have made significant progress building the most urgent passenger rail infrastructure project in the country. The progress we have made since the project started construction would not have been possible without the support of the federal Administration.Since federal funding was paused in October, we have done everything in our power to keep construction moving forward as planned, but we cannot fund this work on credit indefinitely.”
As the absolute last resort pausing construction was done and the GDC could continue to try to secure funding.
The quantity of spent taxpayers’ money on the project is over than $1bn to date and since October, GDC has used available funding sources and credit to keep the project going while federal funding disbursements have been paused. GDC has now drawn down nearly all available sources and credit and can no longer continue funding construction without access to the project’s funds.
While providing seventy per cent of the Hudson Tunnel Project’s US$16bn budget, roughly US$12bn, is up to federal grants, the other US$4bn is funded through US Department of Transportation (USDOT) Build America Bureau loans to be repaid by the states of New York and New Jersey and the Port Authority of New York and New Jersey. Funding disbursements from all of these sources have been discontinued since October 1 last year.
GDC has signed and executed funding agreements with all Hudson Tunnel Project funders, including the USDOT, the Federal Transit Administration (FTA), and the Federal Railroad Administration. Federal funding of US$4.38bn is currently allocated to the project. On September 30, 2025, GDC received notice from the FTA that federal disbursements under the Capital Investment Grants (CIG) Programme would be paused pending a review of the Commission’s federally mandated Disadvantaged Business Enterprise (DBE) programme. The following day, all federal funding for the project – not just CIG funds – was paused.
Despite pausing federal funding, construction has continue and since October 1, GDC has procured two TBMs. The first is on site in New Jersey, ready for assembly, and the second is scheduled to be shipped in February.
Additionally, finishing the Tonnelle Avenue bridge and making significant progress on the portal launch box; completed two major concrete pours for HYCC-3, totalling more than 6,585m3, and broke through the bulkhead, connecting to the completed sections of the concrete casing, were their works.
On the Hudson riverbed 84 primary columns and 112 secondary columns of reinforced earth have been mixed, bringing the total number of finished columns to 838, and 29 slurry wall panels have been installed for the Hudson County access shaft and 15 panels for the 12th Avenue access shaft. The Hudson County Shaft slurry wall is now more than 75% finished.
