Federal News
Gateway Commission Resumes Hudson Tunnel Construction
March 13, 2026
Construction activities for the Hudson Tunnel Project have resumed at all sites following a federal court ruling that restored previously withheld funding. The Gateway Development Commission, overseeing this critical $16 billion rail infrastructure initiative connecting New Jersey and Manhattan, cautions that work could again stall if federal funds are interrupted amid ongoing legal disputes. Concurrently, NJ TRANSIT and Amtrak have opened the first track on the new Portal North Bridge in Kearny, New Jersey, a key milestone funded through the Bipartisan Infrastructure Bill that replaces a century-old bridge causing frequent delays. Full completion of the Gateway Program, including the new tunnel and bridge infrastructure, is expected by fall 2026, with dismantling of the old bridge planned for 2027. Procurement professionals and contractors should note the significant federal investment, active construction contracts, and potential funding risks impacting project continuity and subcontracting opportunities in the Northeast Corridor rail modernization effort.
- The $16 billion Hudson Tunnel Project and related contracts represent major procurement opportunities in rail infrastructure, including tunnel construction and bridge replacement.
- The $1.56 billion Portal North Bridge contract awarded to Skanska/Traylor Bros PNB Joint Venture is advancing with active construction and partial operational milestones.
- Federal funding stability remains a critical factor; the Gateway Development Commission continues legal actions to secure uninterrupted funding, which may affect project timelines and contractor cash flow.
- Agencies and contractors should prepare for ongoing coordination with multiple stakeholders including USDOT, Gateway Development Commission, NJ TRANSIT, and Amtrak as the project progresses toward full completion in late 2026.
Today marks a historic step forward for New Jerseys transportation future. For decades, the old Portal Bridge has been a source of delays and frustration for the hundreds of thousands of commuters and travelers who rely on the Northeast Corridor every day.
— New Jersey Governor Mikie Sherrill
The old Portal Bridge was completed just a few months after Mother Theresa was born. Infrastructure that old creates delays, delays ruin birthday parties, preclude family dinners, and create stress for someone just trying to get home after a long day at work.
— Congresswoman Nellie Pou
The new Portal North Bridge will replace a more than 116-year-old bridge held together with band-aids thats caused constant delays and headaches for commuters. This project means faster, more reliable trains, good-paying union jobs, and a stronger economy.
— Congressman Josh Gottheimer (NJ-5)
Agencies
Gateway Development Commission, U.S. Department of Transportation, NJ TRANSIT, Amtrak, Federal Railroad Administration
Vendors
Skanska/Traylor Bros PNB Joint Venture (STJV)
Contracts
$16 billion, $1,559,993,000, $205 million
Locations
Sources
- Hudson Tunnel Project resumes construction at all sites, could stall if overseeing commission loses access to federal funds - Transportation Today · Transportation Today · Mar 12
- NJ TRANSIT and Amtrak Prepare to Open First Track on New Portal North Bridge - Amtrak Media · Amtrak Media · Mar 12
- After judge rules on Gateway tunnel money, two key issues remain · Burlington County Times · Mar 12
- RELEASE: Big Day, Gottheimer Marks Major Milestone as Rail Service Begins on New Portal North Bridge — Funding by Bipartisan Infrastructure Bill He Helped Write, Negotiate, and Pass · Gottheimer · Mar 13