Hudson Tunnel Project Halts Feb 6: 1,000 Jobs at Risk

Hudson Tunnel project faces shutdown February 6 due to halted federal funding, threatening $16B investment and 1,000 jobs, impacting Northeast Corridor rail capacity.

January 28, 2026 9:39 pm

🛑 Key Takeaways:

Construction on the $16B Hudson Tunnel project will halt on February 6 if federal funding is not released.
The work stoppage threatens 1,000 jobs and stalls the nation’s largest public works initiative.
This creates immediate uncertainty for Northeast Corridor rail capacity, impacting Amtrak and NJ Transit, and risks increasing long-term project costs.

NEW YORK/NEW JERSEY – The Gateway Development Commission (GDC) has formally notified contractors that construction on the $16 billion Hudson Tunnel project will be forced to pause on February 6. The shutdown is imminent unless the Trump administration resumes federal fund disbursements, which have been withheld since October 2025. Contractors will begin winding down operations over the next two weeks.

Category	Specification / Detail
Project	Hudson Tunnel Project (Gateway Program)
Total Budget	$16 billion
Stoppage Deadline	February 6
Potential Job Losses	1,000 (including hundreds of laborers)
Key Stakeholders	Gateway Development Commission, Amtrak, NJ Transit, U.S. Federal Government
Scope	New two-track rail tunnel; rehabilitation of existing North River Tunnels

Operational & Technical Details

The project is a core component of the Gateway Program. It is designed to double rail capacity under the Hudson River. The scope includes building a new two-track tunnel and fully rehabilitating the existing, century-old North River Tunnels. These tunnels are a critical chokepoint for the Northeast Corridor. They serve all Amtrak and New Jersey Transit trains entering Manhattan. The funding freeze has already prevented the GDC from awarding two new construction packages. The crucial tunnel boring phase was scheduled to begin next summer.

Market Impact Analysis

This work stoppage introduces significant operational and financial risk to the most vital rail corridor in the United States. A prolonged delay will increase total project costs due to contractor demobilization and remobilization fees. The halt jeopardizes the reliability of daily transit for hundreds of thousands of commuters and intercity passengers. Furthermore, the politicized nature of the funding hold-up injects a high degree of uncertainty into the financing model for other large-scale U.S. infrastructure projects reliant on federal-state partnerships.

FAQ: Quick Facts

What is the total value of the project?

The Hudson Tunnel project is budgeted at $16 billion. It is a key part of the larger Gateway Program to improve rail transport in the Northeast Corridor.

Why is construction being stopped?

The Gateway Development Commission states that federal funding disbursements, which were paused by the Trump administration in October, will run out on February 6. Without new funds, work cannot continue.