The Gateway Development Commission (GDC) has announced a temporary halt to construction on the $16bn Hudson Tunnel Project, due to a pause in US federal funding.

This financing suspension has resulted in GDC placing four major procurement packages on hold, which affects ongoing construction activities.

The immediate halt will lead to the loss of nearly 1,000 jobs, while a longer delay could jeopardise approximately 11,000 construction jobs and threaten the anticipated economic activity of $19.6bn linked to the project.

Furthermore, this delay raises concerns about the 116-year-old North River Tunnel, which is a major source of delays for many commuters.

The majority of the Hudson Tunnel Project's budget relies on federal grants, and GDC has been bound to various funding agreements since July 2024.

Despite more than $1bn already invested in the project, the US Government has not released funds since 1 October 2025.

Following unsuccessful negotiations with federal partners, GDC has initiated legal action in the US Court of Federal Claims to secure the release of the funds.

GDC CEO Tom Prendergast said: “For more than two years, the hardworking men and women building the Hudson Tunnel Project have not missed a day of work.

“That will change today, because the federal administration continues to withhold funding for this vital investment in our nation’s rail infrastructure.

“After spending more than $1bn, and countless hours of hard work, on this project, we will be left with empty construction sites in New York and New Jersey.

“GDC will continue to do everything in our power to get our funding restored and deliver the most urgent infrastructure project in the country.”