President Donald Trump on Monday said the federal government will cover "not one dollar" in cost overruns for the Gateway rail tunnel between New York and New Jersey.
In a Truth Social post, Trump blasted the $16 billion Hudson River tunnel project as a potential "boondoggle," warning it could spiral into the kind of runaway spending seen in California's high-speed rail effort.
"I am opposed to the future boondoggle known as 'Gateway,' in New York/New Jersey, because it will cost many BILLIONS OF DOLLARS more than projected or anticipated," Trump wrote. "Under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS — NOT ONE DOLLAR!"
The president said the federal government is willing to meet with state officials to ensure "hard work and proper planning is done, NOW," but made clear Washington taxpayers will not be on the hook for overruns.
The Gateway project, widely described as one of the nation's most significant infrastructure efforts, would add two new rail tubes under the Hudson River, a critical artery for about 200,000 daily commuters.
Congress has authorized $16 billion for the project, with the federal government pledging more than $11 billion.
Federal funding was suspended for more than four months while the administration reviewed contracts for compliance with revised regulations.
According to The New York Times and Politico, about $205 million in reimbursements had been delayed, forcing a pause in construction and the temporary layoff of approximately 1,000 union workers.
Last week, following a court order, the administration began releasing funds, sending $30 million to the Gateway Development Commission, with the remainder expected to follow. Department of Transportation officials said they are complying with the court's directive.
New York Democrat Gov. Kathy Hochul and Senate Minority Leader Chuck Schumer, D-N.Y., criticized the temporary freeze, demanding full and immediate restoration of funding.
State attorneys general from New York and New Jersey sued the administration, arguing the suspension harmed workers and disrupted progress.
Trump framed his stance as fiscal responsibility, pointing to what he called California Democrat Gov. Gavin Newsom's "Railroad to nowhere" as a cautionary tale of cost overruns and mismanagement.
The president also dismissed reports that he sought to condition funding on renaming Penn Station after him as "FAKE NEWS," saying the idea was floated by others, not him.
The standoff underscores broader tensions between Washington and Democrat-led states over infrastructure priorities, regulatory compliance, and spending discipline.
While construction remains paused pending full reimbursement, Trump's message was unmistakable: The federal government will support critical projects — but not blank checks.
With billions in taxpayer dollars at stake, the Gateway debate has become a flashpoint in the administration's push to rein in what it views as wasteful spending while still advancing major infrastructure upgrades.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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