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Trump administration releases $30 million of frozen New York tunnel funding

The federal court's order ended a nearly five-month freeze that halted construction and led to about 1,000 layoffs, with an initial $30 million released for the $16 billion tunnel project.

  • On Friday, the federal government sent $30 million to the Gateway Development Commission as part of $205 million in frozen funds for the $16 billion Hudson Tunnel Project.
  • DOT froze the funds in October, citing a review of DEI-related contracting rules, prompting New York Attorney General Letitia James and New Jersey Acting Attorney General Jennifer Davenport to sue.
  • About 1,000 workers have been sidelined since Feb. 6 when the GDC exhausted a line of credit, and construction will remain paused until the full $205 million is received.
  • U.S. District Judge Jeannette Vargas ordered the federal government to report on disbursement status by Feb. 17, while federal attorneys said part of the $205 million is being sent now and the rest requires U.S. Treasury Department processing.
  • The tunnel carries more than 200,000 daily travelers and 425 trains, and officials warned halting work could cost $100 million per day and risk failure of the existing Hudson Tunnel damaged in Hurricane Sandy, 2012.
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Politico broke the news in on Friday, February 13, 2026.
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