President Donald Trump warned the federal government will not pay “one dollar” in cost overruns for the Gateway Hudson Tunnel linking New York and New Jersey. He posted this declaration about the $16 billion rail tunnel on Truth Social.
In his post, Trump said Gateway is going to be “the future boondoggle,” and could go billions beyond its projected cost. He said the federal government would meet with stakeholders, but wouldn’t take care of any overruns.
He wrote, “Under no circumstances will the Federal Government be responsible for ANY COST OVERRUNS — NOT ONE DOLLAR!”
Earlier this month, The New York Times reported that U.S. District Judge Jeannette A. Vargas asked the administration not to suspend billions in federal funding for the project, as this would cause irreparable harm. But as a result, lawsuits ensued.
If Donald Trump wants to illegally freeze federal funding for the Gateway Tunnel, I say we pull our federal tax dollars right back.
DOLLAR 👏 FOR 👏 DOLLAR 👏 pic.twitter.com/skyRz2onv7
— Katie Brennan (@katiebrennan_32) February 16, 2026
The Gateway project is overseen by the Gateway Development Commission. It will build a new set of rail tunnels under the Hudson River to replace the aging infrastructure that was already damaged by Hurricane Sandy in 2012. This chokepoint is considered to be the busiest in the country as it carries roughly 200,000 daily commuters on NJ Transit and Amtrak trains.
New York Gov. Kathy Hochul and New Jersey Gov. Mikie Sherrill say the funding freeze is politically motivated. Hochul said the court’s intervention meant that the states’ case against the administration will likely succeed. Sherrill, on the other hand, said the project was on time and within budget before funds were frozen, which forced about 1,000 workers off the job and affected hundreds of thousands of commuters, too.
According to officials from both states, $30 million was released last Friday. This installment is the first of a total of $205 million that has been withheld since October.
At a press conference in Weehawken, U.S. Sen. Cory Booker called the freeze “petty” and “vindictive,” and said it held hostage one of the most significant infrastructure efforts in decades. Labor leaders then warned that delays would also drive up long-term expenses. Union representatives from the Teamsters, Laborers, Ironworkers and other trades explained that Gateway provides thousands of jobs and economic stability for the region.
Trump told Chuck Schumer he’d release billions for the Gateway Project on one condition: rename Penn Station and Dulles Airport after him.
Schumer rejected it immediately.
—CNN pic.twitter.com/KVlq646x7k
— Republicans against Trump (@RpsAgainstTrump) February 6, 2026
Meanwhile, Trump has also aimed at California’s high-speed rail project and called out Gov. Gavin Newsom. Trump also said that renaming Penn Station after him was floated by “certain politicians and construction union heads.”
Calling it Penn Station, Trump believes, promotes Pennsylvania as a “direct competitor” to New York.
The Northeast Corridor stretches from Washington to Boston and is a significant slice of the U.S. economy. Supporters argue that modernizing the Hudson crossing is a necessity, while critics say massive public works projects like these have a history of exceeding their original budgets.
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