Rail Passengers on Possible Hudson Tunnel Work Stoppage

For Immediate Release (26-01)
January 27, 2026
Contact: Joe Aiello ([email protected])

Washington, D.C. - Rail Passengers Association President & CEO Jim Mathews issued the following statement in response to today’s announcement by the Gateway Development Commission that construction on the Hudson Tunnel Project will pause on Feb. 6th if the disbursement of previously-committed federal funding isn't restored:

“This is one of the most important rail transportation projects in the nation, and it is vital that work continues. The existing 110-year-old tunnels carry over 200,000 daily passenger trips every weekday onboard 425 trains. Any point of failure would be catastrophic for not only the region, but the entire U.S. economy. We’ve known for decades that these new tunnels need to be built, the funding agreements have been vetted and ratified—now the bureaucrats need to get out of the way and let workers build them!"

“Further delays will hurt not only passengers—it will also cost hard-working Americans their livelihoods. Over 1,000 workers will be out of work in February if federal disbursements don’t continue. If the funding freeze continues, it would endanger over 11,000 construction jobs."

"Rail Passengers urges the U.S. Department of Transportation to restore the flow of funding immediately and allow work on this critical project to continue. This infrastructure project is too significant to play politics. "

Background Context on the USDOT’s Decision to Suspend Previously Committed Federal Funding

• The USDOT announced it would be suspending funding to the Hudson Tunnel Project on Oct. 1st as part of a review now the GDC was using the Disadvantaged Business Enterprise (DBE) Program.

• Congress first enacted the DBE in 1983. It has been largely uncontroversial during the life of the program, with successive Congresses reauthorizing it in every subsequent surface and aviation authorization across the intervening 42 years.

• The USDOT’s interim final rule barring race- and sex-based contracting requirements from federal grants that the agency cited as the basis for suspending funding wasn’t actually published in the Federal Register until two days after the USDOT announced it was suspending the New York projects.