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Gateway Tunnel Funding Crisis Threatens Northeast Economy
5 Feb
Summary
- Business leaders urge President Trump to restore $16 billion rail tunnel funding.
- Work on the Gateway tunnel is scheduled to cease Friday without federal money.
- Pausing construction would increase costs and cause significant delays.
A coalition of business leaders, labor unions, and transit advocates has urgently called on the Trump administration to reinstate funding for the $16 billion Gateway rail tunnel project, which links New Jersey and Manhattan. Without the immediate release of $205 million in federal funds from the US Department of Transportation, work on the vital infrastructure is scheduled to cease on Friday.
The Gateway Development Commission and the states of New Jersey and New York have initiated legal action against the DOT, seeking to unfreeze the allocated funds. These groups emphasized in a recent letter that pausing the project, which is anticipated for completion in 2035, would not only increase overall costs but also create significant, avoidable delays.
They further highlighted the project's critical importance, stating that Gateway represents billions in economic output and is foundational to commerce across the Northeast. For labor, it signifies tens of thousands of well-paying union jobs, essential for both immediate construction and long-term regional economic growth.
