In October 2025, the Trump administration froze approximately $16 billion in federal funding for the Gateway tunnel project, which would build a new rail tunnel under the Hudson River and rehabilitate an existing 110-year-old tunnel between New York and New Jersey. The administration cited compliance reviews and prohibitions on race- and sex-based contracting considerations as reasons for the freeze, which occurred during a government shutdown dispute. Construction halted in early February 2026, resulting in approximately 1,000 workers losing their jobs.
New York and New Jersey sued the administration, and on February 6, 2026, U.S. District Judge Jeannette A. Vargas issued a temporary restraining order requiring the administration to restore funding by February 12, finding the states would likely suffer irreparable harm without it. The administration released approximately $30 million on February 14 and committed to releasing the remaining $205 million owed while appealing the judge's decision. A federal appellate court hearing is scheduled for February 23.
On February 16, Trump posted on Truth Social that the federal government would not cover any cost overruns on the project and denied initiating the idea of renaming Penn Station "Trump Station." Multiple outlets had reported the administration proposed renaming Penn Station and Dulles International Airport after Trump in exchange for releasing Gateway funds. Trump claimed Senate Minority Leader Chuck Schumer suggested the Penn Station renaming, which Schumer called "an absolute lie." White House Press Secretary Karoline Leavitt stated Trump floated the idea to Schumer, contradicting Trump's denial.
