President Donald Trump announced that his administration is terminating federal funding for the Gateway Tunnel project, a multi-billion-dollar plan to construct new rail tunnels under the Hudson River between New York and New Jersey.

“The plug is being pulled,” Trump said, signaling a halt to what has long been described as one of the most critical infrastructure projects in the Northeast. The decision leaves the future of the project uncertain, reigniting political tensions between the White House and local officials.

Lawmakers from both states — including New Jersey Governor Phil Murphy and New York Governor Kathy Hochul — have vowed to fight the move, warning that delays could severely impact Amtrak and regional commuter rail service.

The Gateway Tunnel, intended to replace aging tracks damaged by Hurricane Sandy, was widely viewed as vital for maintaining transportation capacity along the nation’s busiest rail corridor.

While the administration cited fiscal restraint and funding priorities, critics accused Washington of political retaliation, saying the decision undermines long-term infrastructure resilience.