Policy Alert: Court Orders Federal Funding to Continue for Hudson Tunnel Project

A federal appeals court has ruled that the U.S. government must continue funding the $16 billion Hudson Tunnel Project, rejecting the Trump administration’s attempt to halt payments for the major infrastructure project connecting New York and New Jersey. The court warned that stopping the funding could shut down construction sites, creating safety risks and leaving the states responsible for securing inactive work zones.

Construction was halted on February 6 after federal funds were withheld but began ramping back up last month when the administration was ordered to release over $250 million. The Gateway Development Commission, which oversees the project for both states, reported that workers have returned to all construction sites affected by the funding pause and that previously suspended construction activities have resumed.