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US Releases Another $77 Million in Frozen New York Tunnel Funding

  • On Feb. 17, 2026, the Trump administration released $77 million to the Gateway Development Commission for the $16 billion Hudson Tunnel Project, following an earlier $30 million disbursement and bringing total releases to $107 million.
  • The freeze followed USDOT's decision to withhold $205 million starting October 1, 2026, citing a DEI review and prompting New York and New Jersey to sue.
  • GDC halted work on Feb. 6 when its temporary financing ran out, pausing five Gateway projects and putting 1,000 construction workers out of work, wasting project momentum.
  • GDC said it will not restart construction until it receives the full tranche of reimbursements and is working with contractors to plan deployment and resume some construction.
  • The Hudson Tunnel's age and Sandy damage mean it serves over 200,000 travelers and 425 trains daily, with nearly $2 billion spent, Hochul said, `It is urgent that we build this tunnel and do it now and stop these political delays`.
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jdjournal.com broke the news in on Monday, February 16, 2026.
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