Trump declares the federal government will not pay for NY-NJ ‘Gateway’ cost overruns: ‘NOT ONE DOLLAR’

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President Donald Trump is putting more pressure on Democrats over the Gateway Tunnel expansion and renovation of the Northeast Corridor rail line between Newark, New Jersey, and New York City.

“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, much like Gavin Newscum’s ‘Railroad’ to nowhere,” Trump wrote on Truth Social on Monday. “Gateway will likewise be financially catastrophic for the region, unless hard work and proper planning is done, NOW, to avoid insurmountable future cost overruns.”

Trump added that, “under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS – NOT ONE DOLLAR!”

“The Federal Government is willing to meet, however, to make sure that this does not happen!” he wrote. “Also, the naming of PENN Station (I LOVE Pennsylvania, but it is a direct competitor to New York, and ‘eating New York’s lunch!’) to TRUMP STATION, was brought up by certain politicians and construction union heads, not me – IT IS JUST MORE FAKE NEWS!”

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Trump told reporters that Senate Minority Leader Chuck Schumer (D-NY) was the one who proposed renaming Penn Station New York after him, though White House press secretary Karoline Leavitt appeared to contradict that claim during a briefing last week.

“It was something the president floated in his conversation with Chuck Schumer,” Leavitt said.

The Trump administration last week, in response to a federal court order, released the first $30 million of about $205 million in federal funding required to resume the Gateway Tunnel project, construction of which was paused earlier this month because of the lack of funds.

Spokespeople for the Gateway Development Commission have told reporters construction will not resume properly until it receives the full $205 million in funding, with delays costing $20 million a month.

New Jersey, New York, and the Gateway Development Commission have sued the Trump administration for being in breach of the contract signed by former President Joe Biden‘s administration in 2024.

The next court date regarding the broader funding issue is a federal appellate court hearing on Feb. 23.

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The $16 billion Gateway Tunnel project includes plans to build two new rail tunnels underneath the Hudson River between New Jersey and New York and address concerns with the existing tunnels, some of which were damaged during Hurricane Sandy in 2012.

The Trump administration started withholding funding for the Gateway Tunnel project last October amid disputes over the federal government shutdown.

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