Trump Administration Releases Remaining Gateway Funds — And Then Some

The Trump administration on Wednesday paid the remaining portion it owed to the Gateway rail tunnel project, and then some, paving the way for construction to resume next week.

New York Gov. Kathy Hochul, a Democrat, said on X that the administration sent over the remaining installment of money owed to the $16 billion project that spans New York and New Jersey. She called the development a “major win for workers and commuters.”

The announcement comes after a federal judge ordered Transportation Secretary Sean Duffy and President Donald Trump to turn the funding spigot back on. An appeal from the administration is expected to be heard next week in the U.S. Court of Appeals for the 2nd Circuit.

Molly Beckhardt, a spokesperson for the Gateway Development Commission, said, "Letters will be sent to contractors today, and construction activities are expected to resume next week."

Over the course of three installments, the Trump administration paid Gateway a total of $235 million. That includes the $205 million the federal government was in arrears to Gateway, along with $30 million stemming from reimbursements associated with construction costs over the month of January. Funding for the project dried up Feb. 6, halting construction.

The release of the funds is a major win for Hochul, Senate Minority Leader Chuck Schumer, and other New York and New Jersey Democrats, who had fought the Trump administration since the fall, when the Department of Transportation indefinitely paused funding for the nation's largest infrastructure project. When completed, the project will expand the number of rail tunnels between New York City and New Jersey.

“This is a huge win for New York, New Jersey, hundreds of thousands of commuters, thousands of union workers, and the economy of the entire region,” Schumer said in a statement. “We have secured all of December’s funding and even part of January’s ahead of schedule. Workers will be back on the job very soon and Gateway is back on track.”

Trump had previously said Gateway was “terminated,” but seemed to take a different approach in a social media post Monday. He criticized the project and said he would not accept any cost overruns to be paid by his administration, but did not say he would continue to withhold funds for it.

Hochul spoke with Trump on Monday evening by phone following that Truth Social post, according to a person with knowledge of the conversation who was granted anonymity to discuss a private call. Hochul told the president that the project was running on budget and on schedule and asked Trump why he was making this process difficult given the court’s ruling. Trump said he would talk to his people. The full amount of the money owed was disbursed Wednesday.

The White House and DOT did not immediately respond to a request for comment.