Trump's Threat to “Terminate” NYC Tunnel Project Could Kill the Penn Station Redevelopment's Purpose

The Hudson River tunnels are a key rail connection between the Northeast and the South.

2 minute read

October 30, 2025, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Construction on Hudson River Gateway tunnel in New York City.

George Wirt / Shutterstock

President Trump’s threat to terminate New York City’s Gateway Tunnel project could throw a wrench into the plan to redevelop the historic Penn Station, reports Gabrielle Gurley in The American Prospect.

Although some call the project a boondoggle, Gurley explains that “What Gateway’s disparagers usually miss is what makes train travel between the Northeast and the South possible today. Right now, Amtrak and New Jersey Transit can still slowly shunt their trains through an ancient, disintegrating tunnel that the Federal Railroad Administration says demands ‘regular and, occasionally, emergency maintenance.’”

Per an article in Streetsblog NYC, “The railroad's big plans for a new Penn Station still assume a capacity boost from the Gateway Tunnel project — despite President Trump's recent declarations that he has ‘terminated’ the project.” The article adds, “The relationship between Gateway and a new Penn Station is obvious: By repairing the existing train tunnels under the Hudson River and adding two more tunnels between Manhattan and the continental United States, Gateway will greatly expand the train capacity in and out of Penn Station. Transporation Secretary Sean Duffy put Byford, the former president of MTA New York City Transit, in charge of the station's redevelopment in May.” 

According to New York Governor Kathy Hochul, “We need to replace [the tunnels] because if this system of transportation collapses, the Northeastern economy and the economy of the country collapses.” About 70 percent of the Gateway Program is funded through federal sources, money that would be difficult for the states to replace. “For the moment, construction hasn’t slacked off. The manufacturing of the tunnel boring machines that will dig the tunnels is almost complete, and the boring itself is scheduled to begin next summer.”

Editor's Note: This article was amended with additional quotes from Streetsblog NYC and the headline was adjusted for accuracy on November 3.

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