The Gateway Development Commission announced that construction on the Hudson Tunnel Project will resume this week, restoring nearly 1,000 jobs affected by a construction pause that began Feb. 6.
The commission said it is funding the resumed work with approximately $235 million it 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,” said Alicia Glen, New York GDC commissioner and co-chair. “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 the project has seen increased public support in recent weeks.
“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,” Grewal-Virk said.
GDC CEO Tom Prendergast said the agency remains focused on keeping the project on track.
“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,” Prendergast said. “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 in the coming weeks will include continued excavation of the tunnel boring machine launch box at the new tunnel portal, preparation for assembly of the first tunnel boring machine in North Bergen, coordination of delivery of a second machine, ongoing slurry wall installation for the 12th Avenue Access Shaft, excavation of the Hudson County Access Shaft, construction of a marine platform for Manhattan tunnel work, continued ground stabilization in the Hudson River, and site clearing for the New Jersey Surface Alignment Project.
Two major procurements — for the Hudson River Tunnel and New Jersey Surface Alignment contracts — will remain on hold until the commission regains access to the full $15 billion in federal grants and loans that have been paused since Oct. 1, 2025. Those contracts had been scheduled for award in late 2025 or early 2026.
The Hudson Tunnel Project includes construction of a new rail tunnel connecting New York and New Jersey and rehabilitation of the existing tunnel, which opened in 1910 and serves hundreds of thousands of daily riders. More than $1 billion has been invested in the project since construction began in 2023.
The project is funded through federal grant and loan agreements between the U.S. Department of Transportation and the commission. GDC said it continues to work with federal partners while seeking restoration of full project funding.
