Gateway Development Commission Resumes Hudson Tunnel Project Construction

On Feb 24, 2026

The Gateway Development Commission (GDC) announced today that construction of the Hudson Tunnel Project (HTP) is resuming this week. Nearly 1,000 jobs that were impacted by a construction pause that began on Feb. 6 will be restored.

GDC is funding the construction work using approximately $235 million the commission received from the federal government earlier this month.

“Hundreds of workers will return to GDC’s construction sites in New York and New Jersey. This is great news for these workers, the hundreds of thousands of riders who take the train to New York City every day, and the entire region, but we cannot take our eyes off the ball. We need every federal dollar accounted for in our grant and loan agreements to build this tunnel,” Alicia Glen, New York GDC commissioner and co-chair said. “I’m grateful for the many elected leaders, including Leader Schumer and Governor Hochul, who have fought for the project, as well as the united front of business and labor leaders, construction workers, civic and industry groups, transportation advocates, and community members who support this vital investment in our region. Your advocacy has made it possible for us to resume work, and together we will get this tunnel built.”

Balpreet Grewal-Virk, New Jersey GDC Commissioner and Co-Chair said, “In recent weeks, we have seen a massive surge of support for the Hudson Tunnel Project. We are incredibly thankful for Governor Sherrill, New Jersey’s congressional delegation, and the many other leaders who have called on the Trump administration to stop delaying the most urgent infrastructure project in the country. We’re seeing the results of this effort now, as hundreds of workers go back to our construction sites. I look forward to celebrating the launch of our tunnel boring machines through the Palisades once GDC has assurance it will receive the steady flow of funding needed for this megaproject.”

“From my first day as CEO, my mission has been to deliver the Hudson Tunnel Project on scope, schedule, and budget. Thanks to the tireless efforts of the hundreds of men and women working on this megaproject, we have hit every milestone. Our workers continued to hang tough through the construction pause, and together we will keep this project on track,” said GDC CEO Tom Prendergast. “I will do everything possible to restore consistent and reliable funding to deliver this project for our workers, our riders, and the national economy.”

Construction activities that will advance in the weeks ahead include:

• Continuing excavation of the tunnel boring machine (TBM) launch box at the portal to the new tunnel.
• Preparing to assemble the components of the first TBM on site in North Bergen.
• Coordinating the delivery of the second TBM, which is ready for shipment from the manufacturing facility.
• Continuing slurry wall installation for the 12th Avenue Access Shaft and beginning excavation of the Hudson County Access Shaft.
• Constructing a marine platform for work associated with the Manhattan Tunnel.
• Continuing ground stabilization in the Hudson River.
• Conducting site clearing work to prepare for the New Jersey Surface Alignment Project.

While work on GDC’s active construction projects resumes, two major procurements for work on the Hudson River Tunnel and New Jersey Surface Alignment contracts will remain on hold until GDC regains access to all $15 billion in federal grants and loans that has been paused since Oct. 1, 2025. Both of these contracts were scheduled for award in late 2025/early 2026.

The HTP is an investment in America’s passenger rail network that involves building a new train tunnel connecting New York and New Jersey and rehabilitating the existing tunnel, which has been in service since 1910 and is a source of chronic delays for hundreds of thousands of daily riders. More than $1 billion has been invested in construction of the HTP since ground broke in 2023.

The HTP is funded by fully executed federal grant and loan agreements between the U.S. Department of Transportation and GDC. GDC continues to cooperate with its federal funding partners while exploring all avenues for restoring full funding for the HTP to ensure it is delivered on scope, schedule, and budget.

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