Daijiworld Media Network - New York

New York, Feb 18: Construction on the $16 billion Hudson Tunnel Project will resume next week after the administration of Donald Trump released $127 million in previously frozen federal funding, New York Governor Kathy Hochul said on Wednesday.

New York and New Jersey had filed a lawsuit after the U.S. Department of Transportation withheld $205 million in funding for the project since October 1. The freeze led to a halt in construction on February 6, leaving around 1,000 workers out of work.

The Hudson Tunnel Project seeks to construct a new commuter rail tunnel linking Manhattan and New Jersey, as well as rehabilitate the existing century-old tunnel that serves over 200,000 passengers and 425 trains daily. The current tunnel suffered significant damage during Hurricane Sandy in 2012 and requires frequent emergency repairs that disrupt travel along one of the nation’s busiest rail corridors.

“A major win for workers and commuters,” Hochul said on social media, adding that efforts would continue to ensure the federal government fulfils its commitments.

The Department of Transportation did not immediately clarify whether additional funding would be withheld in the future.

According to a source, Trump had last month offered to unfreeze the funds in exchange for Democratic support to rename Washington Dulles Airport and New York’s Penn Station after him, a suggestion that drew criticism from Democrats.

Earlier this month, U.S. District Judge Jeannette Vargas directed the federal government to release funds for the project.

The tunnel project had been allocated approximately $15 billion in federal support during the tenure of former President Joe Biden. Nearly $2 billion has been spent so far.