Construction work on the $16 billion Gateway rail tunnel under the Hudson River is set to restart next week if federal funding is restored, according to sources familiar with the project. The $205 million in federal funding had been halted by the Trump administration, bringing construction to a standstill.

This critical infrastructure project aims to replace aging rail tunnels damaged by Hurricane Sandy and increase capacity between New York and New Jersey. The tunnel is vital for Amtrak and commuter rail services, carrying hundreds of thousands of passengers daily. Any further delays could have significant economic impacts on the region's transportation network.

The potential restart represents a major victory for regional transportation advocates who have long pushed for the project's completion. The funding restoration would allow construction crews to resume work immediately, with completion targeted for the mid-2030s.