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Political Fallout: Trump Administration Freezes Gateway Tunnel Funding Amid Shutdown

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HOSTAGE CRISIS: Trump Freezes Funding for Crucial $16B Gateway Tunnel on Day One of Shutdown—Targeting Schumer and NJ Dems?

the staff of the Ridgewood blog

WASHINGTON, D.C. – In a dramatic escalation of the government shutdown conflict, the Trump administration today announced it is freezing federal funding for the massive Gateway Tunnel Project. This apparent power play, coming on the first day of the shutdown, targets key infrastructure essential to the economies of New York and New Jersey.

The decision affects work already underway on the critical Trans-Hudson rail tunnels—the core of the Northeast Corridor—which had previously secured full federal backing under the Biden administration.

Shutdown Used as Justification for Compliance Review

The federal Department of Transportation (USDOT) justified the funding freeze by claiming the Gateway project must now undergo a review for compliance with the administration’s opposition to contract set-asides for minorities and women.

The USDOT explicitly linked the delay to the congressional gridlock:

“Thanks to the Chuck Schumer and Hakeem Jeffries shutdown… USDOT’s review of New York’s unconstitutional practices will take more time,” the department stated, noting that the staffers responsible for the review are now furloughed.

The freeze immediately cuts off funding for several other critical transit projects, including an extension of New York City’s Second Avenue subway, as well as existing Amtrak/NJ Transit tunnels that desperately need repair.

Democrats and New Jersey Officials Decry the Move

The decision was instantly met with fierce backlash from Democratic leaders, who view the action as a punitive political tactic.

Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries—both key figures in the shutdown standoff and representatives of New York—derided the freeze.

New Jersey Democrats also voiced strong opposition. U.S. Rep. Mikie Sherrill (D-NJ), currently running in a close gubernatorial race against Republican Jack Ciattarelli, released a pointed statement:

“Once again, the Trump administration is targeting New Jersey by gutting this funding… I will fight tooth and nail to see the project completed.”

Meanwhile, the campaign for Jack Ciattarelli echoed the Trump administration’s stance, placing the blame for the shutdown and the resulting funding freeze squarely on Sherrill and her Congressional Democratic colleagues.

The halt on Gateway funding turns the national political battle into a direct local infrastructure crisis, raising the stakes significantly for all parties involved in the government shutdown negotiations.

 

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