Hudson Tunnel Project Construction Resumes

Construction of launch box at tunnel portal in January 2026.

GDC

NEWARK/NEW YORK CITY - The Gateway Development Commission (GDC) announced construction on the Hudson Tunnel project will resume this week.

According to the GDC, almost 1,000 jobs were impacted by a construction pause that began on February 6 as a result of construction funding running out. In a report from January 29, GDC CEO Thomas Prendergast called the pause “an absolute last resort.” The report went on to say that its contractors will “spend the next two weeks winding down work at the active construction sites in New York, New Jersey, and the Hudson River . . . At that time, construction will stop until additional funding becomes available.”

On February 18, RT&S reported funding for the project had resumed after the remainder of funds were released. In an announcement from New York Governor Kathy Hochul, the federal fovernment “released the remaining $98 million in overdue funding to the Gateway Development Commission and provided an additional $30 million in reimbursements for work completed in January.” Additionally, the GDC is funding the construction with $235 million in federal funds it received earlier this month, says the GDC.

Now that construction has resumed, crews will continue to excavate the tunnel boring machine (TBM) launch box at the portal to the new tunnel and prepare assembling the first TBM on site in North Bergen. The second TBM will be delivered once it is ready for shipment from the manufacturing facility. Crews will also continue a “slurry wall installation for the 12th Avenue Access Shaft” and begin excavating the Hudson County Access Shaft. Along with performing marine platform construction with the Manhattan Tunnel, crews will work on ground stabilization in the Hudson River and conduct site clearing to prepare for the New Jersey Surface Alignment Project.

Two major procurements for the Hudson River Tunnel and New Jersey Surface Alignment contracts are still on hold until the GDC “regains access to all $15 billion in federal grants and loans that has been paused since October 1, 2025.” These were supposed to be awarded in late 2025 to early 2026.

“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.”

“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 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.”