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The basics:

• Trump announced termination of the $16B Hudson Tunnel Project
• Project would add a second rail tube and rehab the existing tunnel between NJ and NY
• Gateway Development Commission oversees five active construction sites
• NJ and NY leaders vow to fight funding cuts and protect jobs

The nation’s most critical infrastructure project is in flux following a bombshell declaration by President Donald Trump Oct. 15.

During a press conference with reporters at the White House amid the ongoing federal government shutdown, Trump said he will terminate the Hudson Tunnel Project. Also known as Gateway, the $16 billion project is building another rail tube between New Jersey and New York, as well as rehabbing the existing century-plus-old rail tunnel.

NJBIZ has reported extensively on the project – and toured the construction sites this summer. Five components of the extensive project are already underway on both sides of the Hudson, as well as on the river itself.

Gateway Development Commission oversees the long-delayed project. GDC secured its full-funding commitment last year, including $12 billion in federal funding. The figure marks the largest federal funding commitment to a rail transportation project in modern U.S. history. The work is projected to generate billions of dollars in economic impact and tens of thousands of jobs, while also increasing capacity and reliability on the critical Northeast Corridor.

Work has continued to progress across the five active sites in preparation for the tunnel boring process to begin early next year.

Then, as the federal shutdown began earlier this month, the project became a front in the political fight.

‘It’s terminated’

Office of Management and Budget Director Russ Vought announced a funding freeze for the HTP as well as the Second Avenue Subway Oct 1.

Given that Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries – both Democrats from New York – are central figures in the shutdown fight, the action was seen as a way for the Trump administration to use the project as leverage.

The U.S. Department of Transportation cited a review of “DEI-based contracting practices” as the reason.

That Oct. 1 announcement led to strong reactions from both sides of the Hudson River – and has become a critical issue on the local campaign trail. However, no new notable developments around the situation emerged, until Oct. 15.

Trump made the HTP declaration speaking to reporters about the shutdown and programs his administration is cutting. The latest sent shockwaves through New Jersey, New York, and beyond.

“Russell Vought is really terminating tremendous numbers of Democrat projects,” said Trump. “This is not only jobs. I mean, the project in Manhattan – the project in New York. It’s billions and billions of dollars that Schumer has worked 20 years to get.

“It’s terminated.”

Russell Vought is really terminating tremendous numbers of Democrat projects. This is not only jobs. I mean, the project in Manhattan – the project in New York. … It’s terminated.
— President Donald Trump

Trump did not give any further details or guidance. Additionally, neither the White House or USDOT issued any formal announcements. Both press offices did not immediately respond to a request for comment.

The GDC declined comment.

Gov. Phil Murphy’s office did not immediately respond to a request for comment.

Fighting words

But a number of other leaders in the state and region have weighed in since Trump’s press conference. That includes U.S. Rep. Mikie Sherrill, D-11th District, also the Democratic candidate for governor.

“Trump is terminating the country’s largest and most important infrastructure project, ripping away tens of thousands of jobs and stealing billions of dollars from our state,” said Sherrill. “Hundreds of thousands of New Jerseyans will benefit from this project, but Jack Ciattarelli says that Gateway isn’t a Jersey issue and refuses to stand up to Trump, no matter the cost to New Jersey.

“I’ll fight tooth and nail to get this funding back and complete this essential infrastructure project for our state, commuters, and economy.”

Trump is terminating the country’s largest and most important infrastructure project, the Gateway Tunnel Project, ripping away tens of thousands of jobs and stealing billions of dollars from our state.

I’ll fight tooth and nail to get this funding back and complete this… https://t.co/hV4chsr8Kx

— Mikie Sherrill (@MikieSherrill) October 15, 2025

Republican gubernatorial candidate Jack Ciattarelli signaled his support for the project and voiced his disagreement with Trump on this particular issue.

“New Jersey needs a Governor who has the standing to work with, and when necessary disagree with, the President and advocate for New Jersey’s fair share of federal tax dollars – including the Gateway Tunnel. This is a critical infrastructure project and I will fight to get it done,” he wrote on social media.

New Jersey needs a Governor who has the standing to work with, and when necessary disagree with, the President and advocate for New Jersey’s fair share of federal tax dollars – including the Gateway Tunnel.

This is a critical infrastructure project and I will fight to get it…

— Jack Ciattarelli (@Jack4NJ) October 16, 2025

Dropping the (sledge)hammer

New Jersey U.S. Sens. Cory Booker and Andy Kim, both Democrats, issued a joint statement in response to the Trump announcement.

“Threatening to cut funding for Gateway is a direct attack on New Jersey by the Trump administration. It sends a clear signal that President Trump is more focused on punishing perceived enemies than serving the American people or delivering for New Jersey families,” said Booker and Kim. “This isn’t a Democratic project. It’s a project that has had broad bipartisan support, including from his own Secretary of Transportation, who called it, ‘important’ just days ago.

“We will fight to keep this funding, we will fight to keep the thousands of union jobs it supports, and we will fight to ensure that the better future that Gateway promises for our entire region is fully realized.”

Threatening to cut funding for Gateway is a direct attack on New Jersey by the Trump administration.
— U.S. Sens. Cory Booker and Andy Kim

U.S. Rep. Josh Gottheimer, D-5th District, is another long-time advocate of the project. The North Jersey legislator put out a statement saying Trump is taking a sledgehammer to one of the most important infrastructure projects in the entire country.

“And with that, he’s taking a sledgehammer to tens of thousands of jobs, to our economy, to labor, and to American competitiveness,” said Gottheimer. “I helped write, negotiate, and pass the Bipartisan Infrastructure Bill, which secured the funding for the Gateway Train Tunnel. These are dollars that will help fix tunnels people rely on to get to work that are literally crumbling – dollars already approved by Congress and signed into law.

“I hope both Republicans and Democrats in New Jersey and New York stand with me in fighting back. We cannot let partisan chaos take a wrecking ball to Gateway.”

‘Pure spite and stupidity’

Schumer, who referenced by named by Trump when he said the project was terminated, wrote on social media, “Gateway is the most important infrastructure project in America—period. It will keep our economy moving, our region connected, and tens of thousands of union workers on the job.

“Donald Trump trying to kill it again is pure spite and stupidity. It’s petty revenge politics that would screw hundreds of thousands of New York and New Jersey commuters, choke off our economy, and kill good-paying jobs. It’s vindictive, reckless, and foolish.”

Please stay with NJBIZ for the very latest on this very much developing and critical story.