Construction resumes on Hudson Tunnel Project, but future work uncertain without federal funding

Construction has resumed at all sites connected to the Hudson Tunnel Project, though officials warn work could pause again within months if federal funding disbursements do not continue.

The Gateway Development Commission announced that workers have returned to all construction sites previously affected by a pause, allowing suspended construction activities to restart.

However, the commission said construction may need to halt again in two to three months if access to federal funding is interrupted. Contract awards for the Hudson River Tunnel and New Jersey Surface Alignment projects also remain on hold.

“The Hudson Tunnel Project is the most urgent passenger rail project in the country, and GDC’s mission is to deliver it as soon as possible. Our workers are back, and we are moving full steam ahead across all our construction sites, but we will have no choice but to stop work again if the federal government does not continue to disburse the funds that are committed to the project,” said GDC CEO Tom Prendergast. “This project is too important to delay. That’s why we’re doing everything possible to regain consistent and predictable access to all our federal funding so we can keep our workers on the job and deliver the reliable, modern rail transit Americans deserve.”

Officials said several milestones have already been reached on the project in 2026.

The Tonnelle Avenue Bridge and Utility Relocation Project was completed after the bridge structure finished in late 2025. Final paving, striping and other construction closeout tasks have since been completed, opening space beneath Tonnelle Avenue for tunnel boring machines to be assembled for launch.

Parts of the first tunnel boring machine for the Palisades Tunnel Project have arrived at a construction site in North Bergen and are being prepared for assembly. A second machine has also shipped from the factory, with components expected to arrive at the site in March.

Construction crews have also completed installation of the slurry wall for the Hudson County Access Shaft, which creates a watertight perimeter for the shaft underground. Excavation at the site is expected to begin this spring.

Additional work underway includes installing pipes and building an overwater platform near the Manhattan bulkhead to support ground-freezing work ahead of future tunnel boring. In the Hudson River, a cofferdam has been moved east toward Manhattan, allowing deep soil mixing work to stabilize the riverbed to resume.

Meanwhile, work continues on the Hudson Yards Concrete Casing – Section 3 tunnel box. Crews have completed the placement of more than 11,000 cubic yards of concrete for the tunnel floor, known as the invert slab, and are now installing the walls.

The Hudson Tunnel Project is part of the larger Gateway Program, aimed at modernizing and expanding rail infrastructure between New Jersey and New York. Officials say maintaining consistent federal funding is critical to keeping construction moving forward.