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Democratic lawmakers have called on President Trump to reinstate funding for a $16 billion tunnel project in the New York City area, warning that work could halt next week. The project, fully funded, permitted, and under construction, is crucial for the Northeast Corridor, serving 200,000 daily travelers and supporting 10% of the national economy. The Gateway Development Commission has stressed that suspension could have serious economic consequences. Disputes over funding, past court rulings on disadvantaged business programs, and prior administrative actions have complicated the project, leaving its future uncertain.
Democratic lawmakers from New York and New Jersey have urged President Donald Trump to restore funding for a major $16 billion tunnel in the New York City area, warning that work could stop next week if action is not taken. In a letter, Senators Chuck Schumer, Kirsten Gillibrand, Cory Booker, Andy Kim, and several House members from the two states stressed that continued delays could disrupt the Northeast Corridor, lead to significant job losses, and seriously impact both regional and national economies, despite the project being fully funded, permitted, and already under construction. Advertisement
The White House has not issued an immediate comment, though earlier it blamed Democrats for the funding dispute. The U.S. Transportation Department, which has withheld funds, directed questions back to the White House.
In October, Trump announced he had terminated the project, citing Schumer's previous support for it. The Republican administration has repeatedly challenged major transit and infrastructure projects in Democratic-led states. Former Transportation Secretary Pete Buttigieg criticized the withholding of funds, calling it straight-up mob boss politics.
The Gateway Development Commission, established in 2019 to manage the project, has warned that work will be suspended on February 6 if the funding, originally approved during President Joe Biden's administration, is not restored. The existing Hudson tunnel, built in 1910 and severely damaged by Hurricane Sandy in 2012, is vital for commuting in the metropolitan area, which generates around 10% of the country's economic output and serves 200,000 daily travelers.
Over USD 1 billion has already been spent. The initiative, which includes USD 12 billion in federal grants and USD 4 billion in federal loans, covers repairs to the old tunnel and construction of a new one for Amtrak and state commuter lines connecting New Jersey and Manhattan.
The U.S. Transportation Department accused Gateway in December of violating the Disadvantaged Business Enterprise program, designed to support small businesses run by socially and economically disadvantaged individuals. A recent court ruling removed the automatic assumption that women and certain minority groups are economically disadvantaged when bidding for contracts. Gateway has stated that it remains in compliance with federal law. Trump, who has a history as a New York City real estate developer, also refused to approve funding for the project during his first term.
Source Reuters
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