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New York tunnel construction will resume after Trump releases frozen funding

ReutersFeb 18, 2026 3:43 PM

- Construction on the massive $16 billion Hudson Tunnel Project will resume next week after the Trump administration released $127 million in frozen funding, New York Governor Kathy Hochul said on Wednesday.

New York and New Jersey sued after the U.S. Department of Transportation withheld $205 million in funding for the project since October 1. The funding freeze had triggered a halt to construction that put 1,000 workers out of work. The Hudson Tunnel Project aims to build a new commuter rail tunnel connecting Manhattan and New Jersey and repair a century-old tunnel used by more than 200,000 travelers and 425 trains daily.

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