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Gateway begins boring first new Hudson River rail tunnel in over a century

Gateway begins boring first new Hudson River rail tunnel in over a century

Built World

The $16 billion Hudson Tunnel Project is now boring the Palisades after a federal funding fight

October 8th, 2026: GDC confirms first TBM is mining the Palisades

Overview

Updated Oct 25

Gateway held a ceremonial launch Sept. 28, and the first of two tunnel boring machines has been chewing through the Palisades Cliffs since early October. It cuts about 30 feet a day on a 5,100-foot run from North Bergen to a shaft on the Weehawken-Hoboken line, where the pair is due about a year after launch.

At that shaft site, crews reached bedrock 80 feet below street level and plan controlled blasting down to roughly 130 feet, with test blasts as early as Oct. 27. The $16 billion project also covers repairs to the 116-year-old North River Tunnel, now set to finish in 2038, three years after the new tunnel opens.

Why it matters

Until a new tunnel opens, Amtrak and NJ Transit riders depend on a 116-year-old, storm-damaged tunnel that is the Northeast Corridor's worst bottleneck.

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Key Indicators

$16B
Total project cost
New two-tube tunnel plus rehabilitation of the 1910-era North River Tunnel.
2
Tunnel boring machines in the first pair
First machine began mining in early October; GDC has not announced a launch date for the second. A second pair will dig the under-river crossing.
200,000+
Daily riders on the existing tunnel
Passenger trips through the storm-damaged North River Tunnel each day.
5,100 ft
First-phase tunnel length
Distance from the North Bergen portal to the Hudson County Access Shaft.
2038
Rehabilitation finish for the old tunnel
GDC's target for finishing repairs to the North River Tunnel, after the new tunnel opens.

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People Involved

Kathy Hochul
Kathy Hochul
Governor of New York
Pushing for project completion by 2034
 Donald Trump
Donald Trump
President of the United States
Administration dropped funding appeal in September 2026

Organizations Involved

Gateway Development Commission
Gateway Development Commission
Bi-state infrastructure authority
First machine mining the Palisades since early October; second machine's launch date not yet announced

The New York-New Jersey commission building the Hudson Tunnel Project.
Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
Bi-state transportation agency
Managing the Palisades Tunnel construction package

The agency managing the first tunnel boring construction package in partnership with GDC.
Schiavone Lane Dragados JV
Schiavone Lane Dragados JV
Construction joint venture
Building the Palisades Tunnel Project package

The joint venture contracted to bore the first phase through the New Jersey Palisades.

Timeline

October 2023 October 2026

9 events Latest: October 8th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. GDC confirms first TBM is mining the Palisades

    Latest Construction

    GDC announces the first tunnel boring machine has begun mining on schedule through the New Jersey Palisades Cliffs. A second machine will launch in the coming weeks; the pair will build 5,100 feet of tunnel in about a year.

  2. Crews reach bedrock at Hudson County shaft site

    Construction

    Excavation at the future tunnel retrieval shaft on the Weehawken-Hoboken border hits bedrock about 80 feet below street level. Contractors plan controlled blasting to roughly 130 feet and a 100-foot-deep retaining wall to keep groundwater out before the boring machines arrive.

  3. TBM launch opens tunnel boring phase

    Construction

    GDC marks the start of tunnel boring for the first new Hudson rail tunnel since 1910. Final testing followed the ceremony; the first machine began mining in early October.

  4. Ceremonial TBM launch held

    Milestone

    GDC, Governor Hochul, and others celebrate the start of tunnel boring for the first new Hudson rail tunnel since 1910.

  5. Funding appeal dropped

    Legal

    Trump administration ends its challenge in the Second Circuit, keeping federal funds in place.

  6. Manhattan Tunnel contract awarded

    Contract

    GDC awards $1.29 billion contract to Traylor Bros., Walsh Construction, and Skanska, moving all packages into active construction.

  7. Judge orders funding released

    Legal

    Federal judge orders release of over $200 million in frozen funds; work resumes after a near-month stoppage.

  8. Federal funding frozen

    Legal/Political

    Trump administration freezes Gateway funds over DEI contract review, prompting a slowdown of work.

  9. Construction begins in North Bergen

    Construction

    Contractors start the Tonnelle Avenue bridge and launch box that will anchor the tunnel boring machines.

Scenarios

1

First pair of TBMs arrives at Hudson County Access Shaft

Likely Resolves by End of 2027

Discussed by: GDC, which said machines reach the shaft about a year after launch

The two hard-rock machines advance roughly 30 feet a day toward the Weehawken-Hoboken boundary. If excavation holds to plan, crews extract them at the shaft and lower in the second pair for the river crossing. A major rock fault or TBM breakdown would slip the milestone.

2

Hudson Tunnel opens to revenue service by 2035

Possible Resolves by End of 2035

Discussed by: GDC and Governor Hochul, who targets 2034

With all construction packages now contracted, the schedule hinges on the under-river boring, the Manhattan approach, and rehabilitation of the old tunnel. Hochul set a 2034 goal; the official opening is planned for 2035. Financing disputes, ground conditions, or contractor delays could push that back.

3

Federal funding freeze returns and halts tunnel boring

Possible Resolves by Q2 2028

Discussed by: AmNewYork and Engineering News-Record, citing repeated administration attempts to claw back funds

The Trump administration froze funds in September 2025 and appealed a court order to release them before dropping the case in September 2026. A renewed freeze would stop the machines mid-bore and again threaten the schedule, as it did in February 2026.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1904-1910

Pennsylvania Railroad's original Hudson tunnels (1904-1910)

The Pennsylvania Railroad spent six years digging twin rail tunnels under the Hudson, opening them in 1910 as part of its New York Improvements Project that included Penn Station. They have run continuously since, carrying millions of passengers per year.

Then

The tunnels made direct rail service into Manhattan possible and anchored the Northeast Corridor.

Now

Still in service 116 years later, they are the only rail crossing under the river and a leading cause of regional train delays.

Why this matters now

The new project is the first to add capacity since 1910, and it is required before the old tunnels can be closed for repairs.

October 2012

Hurricane Sandy floods the North River Tunnel (2012)

Storm surge poured saltwater into the North River Tunnel, corroding electrical and signaling systems. Amtrak later estimated hundreds of millions in damage while the tunnel kept running.

Then

The tunnel remained in service but with weakened systems and added vulnerability.

Now

The damage is the central justification for the new tunnel, since the old one cannot be closed for repairs until new capacity exists.

Why this matters now

The need to rehabilitate the Sandy-damaged tunnel is what makes the new boring urgent.

2006-2023

East Side Access (2006-2023)

New York's Metropolitan Transportation Authority spent roughly $11 billion over 17 years to tunnel Long Island Rail Road trains into Grand Central Terminal. The project missed its original budget and schedule by wide margins.

Then

Opened in January 2023, years late and billions over budget.

Now

Serves as the regional cautionary tale for mega-project cost and schedule risk on the same rail system.

Why this matters now

The Hudson Tunnel Project faces similar cost and schedule exposure and is often judged against East Side Access's overruns.

Sources

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Gateway Development Commission Office of Governor Kathy Hochul World Construction Network Construction Dive Associated Press / MDJ Online Engineering News-Record amNewYork Gothamist Underground Construction Railway Track and Structures NJBIZ Railway Age Webuild Group WSP We Build Value Gateway Development Commission Gateway Development Commission NJBIZ