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Rail News Home Federal Legislation & Regulation

2/17/2026



Rail News: Federal Legislation & Regulation

Trump denounces restoring federal funds to Hudson rail tunnel project


President Donald Trump
Photo – loc.gov/free-to-use/presidential-portraits

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President Donald Trump yesterday reiterated his opposition to the $16 billion Hudson River rail tunnel project, calling it a "boondoggle" in a social media post.

In the post, the president said he remains opposed to the project due to a concern about potential cost overruns, although he did not provide evidence.

"Please let this statement represent the fact that, under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS — NOT ONE DOLLAR!," the Truth Social post states. "The Federal Government is willing to meet, however, to make sure that this does not happen!"

Trump also denied saying that he wanted New York Penn Station renamed after him in exchange for releasing the project's federal funds.

The project calls for construction of new and rehabilitation of old passenger-rail tunnel tubes that run under the Hudson River between New York and New Jersey. In October 2025, the Trump administration froze previously awarded federal funds so that it could review whether the funding was in line with its federal requirements.

The Gateway Development Commission, the project's manager, shut down construction on Feb. 6 because the federal government owes about $205 million in disbursements. About 1,000 workers were laid off because of the construction pause, commission officials have said. A judge ordered the funding to be restored, then put her order on hold for a couple of days. On Feb. 13, the Trump administration said the funding would begin to flow again. A majority of the project's funding is through the federal government.

The president's comments yesterday added new uncertainty to the funding situation.

The Gateway Commission, New York and New Jersey officials have sued the federal government for halting the project's federal funding. New Jersey Gov. Mikie Sherrill yesterday reiterated that legal action will continue.

"Donald Trump’s ridiculous political rhetoric is just another effort to get out of paying what the federal government owes to the most urgent infrastructure project in the country," she said in a prepared statement. "We won’t let him. We’ll keep taking him to court, and we’ll keep winning, until the Gateway Tunnel’s entire funding is once again secured.”

Gateway Commission CEO Thomas Prendergast has said the longer the project is delayed, the more expensive it will become.



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