Biden-Era Project Slammed as Boondoggle

President Trump boldly calls out the $16 billion Gateway Tunnel as a “boondoggle” and vows taxpayers won’t foot the bill for inevitable overruns, echoing fiscal discipline against wasteful Biden-era projects.

Story Highlights

Trump slams Gateway Tunnel on Truth Social as a “financial catastrophe,” refusing federal liability for cost overruns.
Funding freeze since September 2025 led to February 6 shutdowns at five sites and 1,000 union job losses.
Court orders partial $30 million release, but full resumption uncertain amid DOT appeals and Trump’s opposition.
Project revives aging Hudson tunnels critical for 240,000 daily commuters, yet parallels overrun-plagued California high-speed rail.

Trump’s Stand Against Wasteful Spending

On February 16, 2026, President Trump posted on Truth Social criticizing the $16 billion Gateway Tunnel project connecting New York and New Jersey. He labeled it a “boondoggle” and “financial catastrophe,” claiming costs would balloon by billions. Trump vowed the federal government bears no responsibility for overruns, prioritizing taxpayer protection. This stance aligns with conservative demands for fiscal restraint after years of overspending under prior administrations. The post followed court-ordered funding releases, signaling Trump’s leverage in infrastructure disputes.

Project Background and Biden-Era Origins

The Gateway Tunnel replaces century-old Hudson River rail tunnels damaged by Superstorm Sandy in 2012. It follows the canceled $11 billion Access to the Region’s Core project, axed by NJ Gov. Chris Christie in 2010 due to runaway costs. Construction began in 2023 under President Biden as the top U.S. infrastructure priority, with federal commitments exceeding $11 billion in grants and loans. Trump administration skepticism mirrors past delays during his first term and defunding of California’s high-speed rail, whose costs escalated from $33 billion to over $100 billion. Northeast Corridor handles 240,000 daily riders, with existing tunnels at risk of full closure.

Funding Freeze Triggers Shutdowns and Lawsuits

Post-2024 election, the Trump administration froze federal funding on September 30, 2025, citing compliance reviews on minority- and women-owned business contracting and DEI principles. States certified compliance, yet funds remained withheld into October. New York and New Jersey covered costs until exhaustion, leading to February 6, 2026, shutdowns at five sites and 1,000 job losses. NY AG Letitia James and NJ Acting AG Jennifer Davenport sued the DOT, alleging political retribution. A federal judge ordered resumption the week before February 13; the Second Circuit denied a stay. DOT released $30 million of $205 million owed on February 13-14.

Gateway Development Commission claims full compliance but declined comment on Trump’s post. Sen. Chuck Schumer criticized the freeze as unlawful, while states invested hundreds of millions to avert delays. Trump offered a federal meeting to improve planning, denying demands like renaming Penn Station.

Stakeholders Clash Over Fiscal Responsibility

President Trump and the DOT control funding, emphasizing anti-boondoggle measures and leverage against Democrats like Schumer. Democratic leaders counter with litigation, framing freezes as sabotage of essential infrastructure. Union workers seek job restoration amid layoffs. GDC warns pauses invite insurmountable overruns, while states highlight risks to $20 billion daily NY-NJ economic flow. Power dynamics pit executive purse strings against court rulings and congressional appropriations. Trump’s position protects federal taxpayers from bailing out mismanaged megaprojects in Democratic strongholds.

Economic and Political Ramifications

Short-term impacts include 1,000 layoffs, elevated restart costs in millions, and snarls for 240,000 commuters. Long-term, tunnel failure could cripple national rail and supply chains. States face wasted investments; regional GDP suffers. Politically, the battle burdens 2026 NJ Republicans, with Democrats portraying it as overreach. Broader signals warn megaprojects of federal scrutiny on DEI and overruns, reinforcing precedents like Christie’s cancellation. Trump’s fiscal conservatism resonates with voters tired of globalist waste and inflation drivers.