What exactly changed to restart the Gateway Tunnel work?

A federal court ordered the release of $205 million in delayed funds. With cash back in flow, contractors can remobilize, workers return, and near-term schedules hold. Reports confirm work will resume next week, restoring stability to payments, long-lead orders, and construction sequencing for the Hudson Tunnel Project.

Why does the Gateway Tunnel matter to Indian investors?

It signals steady U.S. infrastructure demand to 2035. Indian exporters in steel, electricals, HVAC, project IT, and chemicals benefit from predictable orders and shipping windows. Dollar-linked revenue can also support rupee earnings, though firms should still monitor FX, freight, and wage trends that affect margins.

How big is the project in INR terms?

The funding release is $205 million, roughly INR 1,700 crore at about INR 83 per USD. The total project cost near $16 billion translates to around INR 1.33 lakh crore. These are approximations for context; actual spending will phase across many years and contract packages.

What risks could still delay the Hudson Tunnel Project?

Key risks include cost inflation in steel and copper, labor availability, complex systems integration, and political timetables. Any contract dispute or procurement slippage can push milestones. Monitoring public updates, tender outcomes, and supply chain lead times helps gauge whether commissioning targets remain credible.

Law and Government

Gateway Tunnel February 21: Work Resumes After $205M Funds Released

ByHuzaifa Zahoor February 21, 2026February 21, 2026

Gateway Tunnel funding is moving again after a court ordered the release of $205 million, restarting work next week. The $16 billion Hudson Tunnel Project had paused, furloughing about 1,000 union workers. The restart steadies construction timelines to 2035 and lowers supply risk for the Amtrak Northeast Corridor. For Indian investors, this signals steady US infrastructure demand. At roughly INR 83 per USD, the release equals about INR 1,700 crore, and total scope is near INR 1.33 lakh crore. We explain why this matters now.