Federal funding for Gateway abruptly put under review
By: Colleen Wilson
NorthJersey.com
USA Today Network - New Jersey
..... Despite the Trump administration showing support for the federally approved $16 billion Hudson Tunnel project for the last 10 months, the U.S. Department of Transpiration decided to embark on a "review" of the project's "race- and sex-based contracting requirements" On October 1 [2025] -- the first day of the government shutdown.
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"Secretary [Seam] Duffy's position on the [disadvantage business enterprise] program is clear - subsidizing infrastructure contracts with taxpayer dollars based on discriminatory principles is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources," according to a post on X from the Department of Transportation. "USDOT issued letters to New York to inform them that their two mega projects - the 2nd Avenue Subway and Hudson Tunnel - are under administrative review to determine whether any unconstitutional practices are occurring."
..... However, the Hudson Tunnel project is not a "New York" project; it is overseen by the Gateway Development commission, a bistate agency with board members form New York, New Jersey and Amtrak. the project will largely serve New Jersey residents - one of whom is Duffy - who rely on the 115-year-old tunnels under the Hudson River to get to New York Penn Station, which were severely damaged during Superstorm Sandy and in need of repairs. Before that rehabilitation project will take place, two additional tubes are being built to eventually increase the number of trains that come and go from the busiest transit hub in North America.
.... Thomas Prendergast, the CEO of the GDC, said the agent received notification form the FTA about the pause in reimbursements.
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"GDC complies with all federal laws and regulations, and will continue to do so throughout the project. We look forward to continuing our productive relationship with the administration. FTA, FRA, and the U.S. Department of Transpiration," Prendergast said. "In the meantime, we remain focused on keeping he project on scope, schedule, and budget." The DOT's decisions to announce its new rule on contracting requirements coincides with the first day of the federal government shutdown, which is preventing DOT staff from reviewing the grant projects.
..... "Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review," the post said. The notice also blamed New York Democrats, specifically Senator Chuck Schumer and Representatives Hakeem Jefferies, both minority-party leaders in each chamber, for causing the shutdown.
..... About $11.7 billion or roughly 70% -- of the estimated $16 billion cost of the Hudson Tunnel project is funded with federal dollars from a variety of programs and sources. The process for spending federal grant dollars involves the agency typically procuring contracts and paying of costs upfront, then seeking monthly reimbursements from the federal government.