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Federal Judge Temporarily Allows Transportation Department to Suspend Hudson Tunnel Project Funding

New York and New Jersey filed a suit to challenge funding cuts tied to federal scrutiny of diversity, equity, and inclusion contracting rules.
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Federal Judge Temporarily Allows Transportation Department to Suspend Hudson Tunnel Project Funding
A tunnel is under construction in Manhattan that will connect New York and New Jersey in New York City on Oct. 2, 2025. Ted Shaffrey/AP Photo
Matthew Vadum
Matthew Vadum
2/9/2026|Updated: 2/11/2026

A federal judge on Feb. 9 temporarily allowed the Trump administration to reinstate its four-month-old freeze on federal funding for the Hudson Tunnel Project that will connect rail lines between New York and New Jersey.

The $16 billion Hudson Tunnel Project involves building a new tunnel and railroad infrastructure for passenger rail trains under the Hudson River while rehabilitation efforts take place on the existing tunnel. The new tunnel will carry Amtrak and New Jersey Transit Northeast Corridor passenger trains between New Jersey and New York.

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Matthew Vadum
Matthew Vadum
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Matthew Vadum is an award-winning investigative journalist.
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