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Gateway Tunnel Funds Released, Construction Set to Restart Next Week

A federal judge's order compelled the Trump administration to release months of withheld reimbursements.

Overview

  • The Gateway Development Commission reports more than $205 million now on hand after a final roughly $127 million transfer on Feb. 18.
  • Contractors have been instructed to remobilize, with work expected to resume next week following a Feb. 6 stoppage that sidelined about 1,000 workers.
  • The administration has appealed to the Second Circuit, with arguments expected next week, leaving the funding fight active even as payments resume.
  • USDOT initially froze reimbursements on Oct. 1 over Disadvantaged Business Enterprise compliance, and President Donald Trump has criticized Gateway as a “future boondoggle” while rejecting federal liability for cost overruns.
  • The $16 billion program will rehabilitate the 116-year-old North River Tunnel and build a new two-track Hudson River tunnel on the Northeast Corridor, backed by federal, state and Amtrak funding.