Hudson Tunnel Project construction resumes

The basics:

• Hudson Tunnel Project construction resumes after pause beginning Feb. 6
• Unfrozen $235M in federal funds restores nearly 1,000 jobs
• Two major Gateway contracts remain on hold
• Project surpassed $1B in construction investment since 2023

The Gateway Development Commission announced Tuesday construction on the Hudson Tunnel Project will resume this week, restoring nearly 1,000 jobs affected by a pause that began Feb. 6.

Work will restart using approximately $235 million in federal funds recently received by the GDC, following a court ruling unfreezing the money as litigation plays out.

NJBIZ reported on the recent developments that have played out over the last few weeks and months regarding the nation’s most critical infrastructure project — on construction sites, in court rooms, on social media, in the press and more. (See timeline below)

Frozen funds flowing

GDC officials credited elected leaders and widespread regional support for helping resume work, while emphasizing the need to secure the full $15 billion in federal grants and loans previously approved for the project.

“In recent weeks, we have seen a massive surge of support for the Hudson Tunnel Project. We are incredibly thankful for Gov. 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,” said New Jersey GDC Commissioner and co-Chair Balpreet Grewal-Virk. “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.”

“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,” said New York GDC Commissioner and co-Chair Alicia Glen. “We need every federal dollar accounted for in our grant and loan agreements to build this tunnel.”

Keeping Gateway on track

Upcoming construction activities include excavation for the tunnel boring machine launch site in North Bergen, assembly of the first tunnel boring machine and delivery of the second, slurry wall installation for the 12th Avenue Access Shaft, ground stabilization in the Hudson River, and preparation work for the New Jersey Surface Alignment Project.

However, two major contracts for the Hudson River Tunnel and New Jersey Surface Alignment remain on hold until full federal funding access is restored. Those contracts were slated for award in late 2025/early 2026.

Overall, the project will build a new rail tunnel between New York and New Jersey as well as rehabilitate the existing circa-1910 tunnel. The effort has already surpassed $1 billion in construction investment since work began in 2023.

The Gateway project was on schedule and on budget when the pause and funding freeze hit.

“From my first day as CEO, my mission has been to deliver the Hudson Tunnel Project on scope, schedule, and budget,” said GDC Chief Executive Officer Tom Prendergast. “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. I will do everything possible to restore consistent and reliable funding to deliver this project for our workers, our riders, and the national economy.”

Even as separate lawsuits over federal funding filed by New York, New Jersey and the Gateway Development Commission play out in the coming weeks, the construction restart marks renewed momentum for a project critical to the region – and the nation.