Funding Standoff Puts Gateway Tunnel at Risk as Unusual Naming Proposal Emerges
A major transportation project connecting New Jersey and New York is again at the heart of political controversy as reports suggest an unexpected proposal related to long-delayed federal funds. The Gateway Tunnel, a multibillion-dollar train project under the Hudson River, may be halted due to frozen government funds.
Multiple sources say President Donald Trump’s administration offered Senate Democratic Leader Chuck Schumer blocked Gateway Tunnel funds in exchange for political support on renaming important transportation sites. The proposed alterations included renaming Penn Station and Dulles International Airport after Trump. The proposal was rejected fast.
Schumer refused, stating he couldn’t allow such modifications. Democrats believed the budget suspension was a presidential decision that did not require negotiation, according to sources. Schumer’s office and the Trump administration did not comment.
The $16 billion Gateway Tunnel project involves building two new train tunnels beneath the Hudson River, rehabilitating aging tunnels, and finishing rail infrastructure. Northeast Corridor rail service, which serves hundreds of thousands of daily commuters and the surrounding economy, relies on the tunnel.
As part of a federal budget debate with Democrats, Trump “terminated” the project in October. Afterward, building continued, but the administration delayed federal financing needed to complete the project. The funding pause is essential.
Construction personnel stopped work at Gateway Tunnel sites as the federal funding deadline approached without an agreement. Without funds, 1,000 construction workers could be laid off, officials said. If work is halted, New Jersey’s first tunnel-boring equipment will stop working.
The project commission sued the Trump administration, alleging that Congress had previously approved the financing and that withholding it is illegal. New Jersey and New York filed separate lawsuits to release the funds.
The budget suspension was arbitrary and illegal, according to New Jersey Governor Mikie Sherrill. She said the decision threatens regional jobs and economic stability and accused the administration of altering its justifications for rejecting the money.
The White House previously tied the funding delay to a project diversity, equality, and inclusion review. The study came during difficult budget negotiations and a federal government shutdown. The administration recently blamed Senate Democrats for not funding the Department of Homeland Security, particularly ICE immigration enforcement. Democrats rejected such funding amid a national immigration debate.
Trump administration officials said Democrats could fix the problem by financing DHS, saying that national concerns should come first. Democratic opposition says infrastructure financing should not be used as leverage in unrelated political issues.
Democratic lawmakers slammed the naming suggestion. New York Senator Kirsten Gillibrand said public infrastructure names should not be used for negotiating. She stressed that the issue is jobs, transportation safety, and economic effect, not political branding.
The budget dispute has also sparked controversy in New Jersey’s 7th Congressional District, a competitive district with many commuters who depend on rail service. Several Democratic contenders worry that postponing the project endangers employment and regional transportation.
As court cases progress and building lags, the Gateway Tunnel’s future is uncertain. The debate has escalated beyond budget numbers into a political conflict that affects workers, commuters, and the regional economy.
Sources
U.S. Department of Transportation
Gateway Development Commission
State of New Jersey Official Communications
State of New York Official Communications
U.S. Department of Homeland Security
