New York-New Jersey Gateway megaproject to restart after funds released

Federal payments of about $235 million were released after a federal judge's Feb. 6 order, allowing work on the $16 billion Gateway rail tunnel between Manhattan and New Jersey to resume next week.

Construction on the $16 billion Gateway rail tunnel is set to restart after federal payments that had frozen work were released. The funding hold followed withheld federal reimbursements and a federal judge's February 6 order that prompted disbursements. State officials say the releases came in installments over nearly two weeks and that contractors will be sent letters to remobilize and bring workers back next week. The project is intended to add capacity and rehabilitate the Hudson River tunnel, a critical link on the Northeast Corridor. Key facts: - A federal judge's Feb. 6 order prompted the administration to disburse about $235 million in installments, according to officials and court filings. - New York described the sequence as including $30 million released on Feb. 13, another $77 million earlier in the week, and a latest tranche of $98 million plus an additional $30 million in reimbursements for January. - Work paused when funds ran out on Feb. 6, a stoppage that officials said threatened nearly 1,000 jobs. - The Hudson River tunnel carries more than 200,000 daily riders through century‑old tubes that were damaged during Hurricane Sandy; the Gateway program seeks to add capacity and rehabilitate the existing tunnel. - Funding for the project comes from the federal government and New York and New Jersey, with Amtrak committing more than $1 billion; the legal dispute over the funding pause remains active. Summary: Resumption of payments clears the way for contractors to remobilize and for construction to restart next week, according to state officials. The move reduces the immediate interruption to the project and to affected workers, while the underlying court fight over the funding freeze continues and legal proceedings remain active.