NEW YORK (BLOOMBERG) -- Construction on a new $16 billion rail tunnel project connecting New Jersey and Manhattan will stop as soon as next week unless the federal government unlocks funds tied to the development.
Work on the massive infrastructure project under the Hudson River — called Gateway — will be halted by Feb. 6 if the US Department of Transportation fails to release the dollars, according to a person with knowledge of the situation, who asked not to be identified discussing a private matter.
The Trump administration froze $18 billion in New York City-area infrastructure funding in October, citing concerns over diversity and inclusion practices. Gateway, one of the biggest transit developments in the US, was one of the projects impacted by the move.
The project is meant to ease congestion underneath the Hudson River by adding a new tunnel and making upgrades to the current rail tunnel, which is more than 100 years old. Amtrak and New Jersey Transit both use the link to enter Manhattan, shuttling thousands of people every day.
Tom Prendergast, chief executive officer of the Gateway Development Commission, is expected to warn of the work stoppage at its board meeting on Tuesday, the person said. The New York Times first reported the potential work stoppage.
A spokesperson for the USDOT didn’t immediately respond to requests for comment.
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