Federal Funding Freeze Thaws: Hudson Tunnel Project Back on Track

The Trump administration is working to release $205 million in funds for the Hudson Tunnel Project, following a lawsuit by New York and New Jersey. This comes after a U.S. court upheld the need to release the funds, which were initially frozen, halting construction and impacting 1,000 workers.


Devdiscourse News Desk | Updated: 14-02-2026 04:05 IST | Created: 14-02-2026 04:05 IST
Federal Funding Freeze Thaws: Hudson Tunnel Project Back on Track

The Trump administration is taking steps to release $205 million in previously frozen federal funding for the Hudson Tunnel Project. This decision follows a lawsuit filed by New York and New Jersey challenging the freeze, which had stalled the multi-billion-dollar infrastructure project.

A U.S. appeals court recently declined to overturn a lower court ruling mandating the release of the funds. The freeze, initiated in October, halted construction last week and affected approximately 1,000 workers. U.S. District Judge Jeannette Vargas ordered the funds be released to continue the project's aim of upgrading critical rail infrastructure.

Senator Cory Booker praised the development but vowed to ensure no further interruptions. The project, which involves constructing a new tunnel connecting Manhattan and New Jersey, was significantly impacted by the freeze. It follows Trump’s offer to trade fund release for renaming iconic locations after him, an idea met with Democratic resistance.

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