"The commission has continued work on the project since the federal funding freeze by utilizing a line of credit, GDC CEO Tom Prendergast said during the meeting. However, he said that was only a temporary solution that will not last past next Friday. We have now drawn down nearly all of the available sources and credit and can no longer continue funding construction without access to the original project's funds, Prendergast said."
"During a Jan. 27 meeting of the Gateway Development Commission the entity in charge of replacing the tunnels the senator urged Trump to free up the $4.38 billion in funding the feds have already allocated for the undertaking by Feb. 6. The funds were awarded under the Biden administration. We are here today to say that President Trump can, and he must, restore Gateway ASAP because the money, as the board will tell you, is going to run out all too soon, said Schumer, who is also the Senate's Democratic minority leader."
"For that reason, we have notified our contractors that work will have to stop on Feb. 6 if additional funding does not become available. The Trump administration froze funds for the project in October, coinciding with the beginning of the last federal government shutdown. At the time, the federal Department of Transportation said the pause would last until it completed a review of whether the project's contracts complied with the administration's new rules on women- and minority-owned businesses."
Construction on the $16 billion Gateway Tunnel project to improve rail service across the Hudson faces derailing or permanent cancellation unless frozen federal funds are released. The federal government allocated $4.38 billion for the project, but those funds were frozen in October. Senator Chuck Schumer urged President Trump to restore the funds by Feb. 6. The Gateway Development Commission used a line of credit to continue work, but CEO Tom Prendergast said available credit is nearly exhausted and contractors were notified work must stop on Feb. 6 without additional funding. The DOT froze funds pending a review of contract compliance with new rules for women- and minority-owned businesses.
#gateway-tunnel-project #federal-funding-freeze #infrastructuretransit #minority--and-women-owned-business-review
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