Funding Stalemate: Hudson Tunnel Project Faces Delays

New York and New Jersey urged a judge to address the delay in releasing $205 million in federal funds for the Hudson Tunnel Project. A court had previously mandated the unfreezing of funds, but additional procedural requirements have postponed their release, impacting the $16 billion infrastructure venture.


Devdiscourse News Desk | Updated: 14-02-2026 00:51 IST | Created: 14-02-2026 00:51 IST
Funding Stalemate: Hudson Tunnel Project Faces Delays

New York and New Jersey are pressuring a U.S. judge to expedite a hearing regarding the stalled release of $205 million in federal funds earmarked for the Hudson Tunnel Project. This funding delay has halted progress on the crucial $16 billion infrastructure project.

The issue arose after a U.S. appeals court refused to reverse a prior ruling that retained the freeze on the funds enacted in October. This financial barrier forced the states to pause construction efforts just last week.

The states informed U.S. District Judge Jeannette Vargas that additional bureaucratic processes were cited by the U.S. Transportation Department before the Treasury could finalize the fund release, potentially causing further delays of one or two days.

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