Hudson Tunnel Project Resumes as Funding Unfreezes

Construction on the $16 billion Hudson Tunnel Project is set to resume. The U.S. Department of Transportation released $127 million in frozen funds, which had been withheld, pausing construction and impacting 1,000 workers. New York and New Jersey had sued over the funding freeze initially imposed in October.


Devdiscourse News Desk | Updated: 18-02-2026 22:22 IST | Created: 18-02-2026 22:22 IST
Hudson Tunnel Project Resumes as Funding Unfreezes

Construction on the Hudson Tunnel Project, a major infrastructure initiative linking Manhattan and New Jersey, is poised to resume, following the release of $127 million in previously withheld funding by the Trump administration. New York Governor Kathy Hochul announced the development, which marks a victory for workers and commuters after months of halted progress.

The project's funding freeze had triggered a deadlock in February, leading to temporary unemployment for 1,000 workers. Legal action by New York and New Jersey sought to reverse the Department of Transportation's decision to withhold $205 million, a step seen as crucial for the project's continuance.

The tunnel, essential for daily transportation for more than 200,000 travelers, faced setbacks due to needed repairs from Hurricane Sandy. The dispute deepened after hints of political bargaining over naming rights. Despite concerns about cost overruns, officials assured that the project's financial strategy remains solid, ensuring progress toward modernizing critical railway infrastructure.

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