The Trump administration on Wednesday released the rest of the funds it had been withholding for the construction of a major rail tunnel between Manhattan and New Jersey, New York Gov. Kathy Hochul said Wednesday.
The federal government freed up the remaining $98 million due for the Gateway project that is increasing passenger rail capacity into Manhattan, as well as an additional $30 million in reimbursements for work that had been completed in January, Hochul said in a statement.
The frozen funds were released in tranches over nearly two weeks after a federal judge blocked the Trump administration from withholding the money for the project that began construction in 2023. In compliance with that Feb. 6 order, the administration released $30 million on Feb. 13, followed by an additional $77 million earlier this week.
The funding suspension, initiated on the eve of the Oct. 1 government shutdown, this month triggered a total work stoppage that threatened nearly 1,000 employees’ jobs.
Contractors are now being told to prepare to resume construction next week, the Democratic governor said in Wednesday’s statement.
