$77 million released but billions remain frozen as political leverage in a nasty funding fight
New York confirmed that the federal government released another $77 million for new tunnels and bridges connecting the state to New Jersey, but it’s only a fraction of what officials say is owed for the critical Gateway Project. The partial funding release comes amid an ongoing feud between New York Governor Kathy Hochul and President Donald Trump over billions in frozen federal support for infrastructure that both parties acknowledge is essential for regional transportation.
- $77 million released but billions remain frozen as political leverage in a nasty funding fight
- The funding freeze has become a political weapon
- States sued and won, but funding still flows slowly
- The tunnels themselves are literally crumbling
- Trump introduces airport renaming negotiations
- The political calculation becomes clear
Governor Hochul appeared at a construction site alongside union leaders on Tuesday to demand release of the remaining frozen funds. She emphasized that workers deserve certainty about the jobs they trained for and committed their careers to. The political positioning was explicit: Democrats view the funding freeze as retaliation, while Trump continues claiming the project represents wasteful spending that will cost billions more than projected.
The funding freeze has become a political weapon
On October 1, just one day into a government shutdown, the Trump administration suspended $18 billion in already-approved funding for the Gateway Program. The move was explicitly designed to pressure Democrats and Democratic-aligned jurisdictions to comply with Republican demands to end the shutdown. Trump hinted at the time that some funding cuts could be permanent.
The shutdown ended after 43 days in November, but the tunnel project funding remained frozen. Democrats immediately characterized the freeze as political revenge targeting working families. Representative Jerry Nadler said the Trump administration was willing to harm workers and damage the nation’s economy to punish Democrats. Trump doubled down on his opposition, claiming the project was a financial disaster that would cost billions more than anticipated.
States sued and won, but funding still flows slowly
On February 3, New York and New Jersey announced they were suing the Trump administration to release the funds. Attorneys general from both states warned that construction would completely shut down by February 6 unless federal funding resumed. Three days later, a US district judge ordered the funds to be released, citing potential irreparable harm to the project.
The ruling required more than $200 million in reimbursement funds. In response, the federal government released $30 million, then another $77 million on Tuesday. Officials say it’s still not enough to meet their obligations or keep construction moving forward without further delays. The slow-drip approach appears designed to maintain political leverage while technically complying with court orders.
The tunnels themselves are literally crumbling
Union leader Gary LaBarbera emphasized that the existing trans-Hudson tunnels are over 100 years old with failed structural integrity. The project isn’t optional—it’s essential for maintaining safe transportation between two major economic centers. LaBarbera argued the issue should be nonpartisan because these are infrastructure needs, not political disputes.
Governor Hochul addressed Trump directly during her speech, pleading for an end to the political chaos and demanding that he allow construction workers to do their jobs. Her appeal reflected desperation that political considerations were interfering with necessary infrastructure work.
Trump introduces airport renaming negotiations
Trump denied reports that he would unfreeze funding in exchange for renaming New York’s Penn Station or Washington’s Dulles airport after him, calling such claims fake news. However, his White House Press Secretary Karoline Leavitt appeared to confirm the reports during a briefing, saying the president had floated the idea with Senate leadership.
The Trump Organization subsequently filed trademark claims for airports bearing the president’s name. Republicans in Florida’s legislature have already sought to rename the Palm Beach international airport for Trump, citing his nearby Mar-a-Lago residence and golf courses.
The political calculation becomes clear
The funding freeze reveals how Trump uses infrastructure spending as political leverage against Democratic-led states. By withholding already-approved funds, he maintains pressure on Democrats while technically complying with court orders through minimal releases. The partial funding keeps projects alive but prevents meaningful progress, creating ongoing uncertainty that destabilizes employment and planning.
Workers and Democratic officials find themselves trapped between accepting humiliating terms or watching essential infrastructure projects deteriorate from neglect and underfunding.
