Trump administration releases $127 million in overdue funds for New York-New Jersey Gateway tunnel project president had called a 'future boondoggle'

"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."

Federal authorities released the remaining $98 million previously withheld for the Gateway Tunnel project, plus an additional $30 million in reimbursements for January work. The releases came in tranches after a federal judge blocked the withholding and in compliance with a Feb. 6 order that led to $30 million on Feb. 13 and $77 million earlier this week. The prior funding suspension, initiated on the eve of the Oct. 1 government shutdown, caused a total work stoppage that threatened nearly 1,000 jobs. Contractors are preparing to resume construction next week. Governor Kathy Hochul demanded certainty that federal funding will remain in place, while President Donald Trump called the project a "future boondoggle" and asserted the federal government will not be responsible for any cost overruns on the $16 billion project.

Read at www.cnbc.com