Construction on the nation’s most critical infrastructure project is officially back in motion.
The Gateway Development Commission (GDC) announced Tuesday that work on the Hudson Tunnel Project (HTP) is resuming this week, following a nearly month-long standoff with the federal government. The move restores nearly 1,000 jobs that were lost when the project was forced to pause on Feb. 6 due to a lack of funding.
The restart is fueled by approximately $235 million in federal funds released earlier this month following a successful legal challenge and intense advocacy from regional leaders.
The resumption comes as a major relief to laborers and commuters alike. Crews have already returned to construction sites in North Bergen and Manhattan, where their first task was clearing snow left by this past weekend’s historic blizzard.
“Hundreds of workers will return to GDC’s construction sites in New York and New Jersey,” Alicia Glen, New York GDC commissioner and co-chair, said. “This is great news for these workers, the hundreds of thousands of riders… and the entire region, but we cannot take our eyes off the ball.”
Balpreet Grewal-Virk, New Jersey GDC commissioner and co-chair, credited the breakthrough to a “united front,” specifically thanking New Jersey Gov. Mikie Sherrill and New York Gov. Kathy Hochul for their relentless pressure on the federal administration to stop delaying the project.
With the $235 million infusion, the GDC is pushing ahead with several high-priority milestones:
- Tunnel Boring Prep: Resuming excavation of the “launch box” and preparing to assemble the first of two massive tunnel boring machines (TBMs) in North Bergen.
- Global Logistics: Coordinating the shipment of the second TBM from its manufacturing facility.
- Groundwork: Continuing ground stabilization in the Hudson River and slurry wall installation for the 12th Avenue Access Shaft in Manhattan.
- Surface Work: Site clearing for the New Jersey Surface Alignment Project.
While today marks a victory, the project is not yet fully out of the woods. Two major contracts—the Hudson River Tunnel and the New Jersey Surface Alignment—remain on hold.
GDC CEO Tom Prendergast warned that these critical contracts cannot be awarded until the Commission regains access to the full $15 billion in federal grants and loans that have been tied up in reviews and legal disputes since Oct. 1, 2025.
“My mission has been to deliver the Hudson Tunnel Project on scope, schedule, and budget,” Prendergast said. “I will do everything possible to restore consistent and reliable funding.”
The Hudson Tunnel Project is a race against time to replace and rehabilitate the existing 116-year-old North River Tunnel, which has been in a state of decay since it was flooded during Superstorm Sandy.
