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    Hudson Tunnel Project $16bn restart: design and risk notes for rail engineers

    February 25, 2026|

    Reviewed by Tom Sullivan

    Hudson Tunnel Project $16bn restart: design and risk notes for rail engineers

    First reported on New Civil Engineer

    30 Second Briefing

    Work on New York’s $16bn Hudson Tunnel Project has restarted after a court order released federal funding, allowing the Gateway Development Commission to re‑activate nearly 1,000 construction and design jobs. The scheme will deliver a new twin‑track rail tunnel beneath the Hudson River and rehabilitate the existing 110‑year‑old North River Tunnel, a key Amtrak and NJ Transit bottleneck. Geotechnical teams will resume riverbed excavation and ground treatment, while structural works will focus on upgrading ageing linings, drainage and power systems without extended shutdowns.

    Technical Brief

    • Workforce ramp‑up targets nearly 1,000 reinstated design and construction roles across New York and New Jersey.
    • Project capex remains framed at about $16bn, with federal funding a substantial share of total financing stack.

    Our Take

    Within our 741 Infrastructure stories, very few projects match the Hudson Tunnel Project’s US$16bn scale, signalling that GDC is operating in the same complexity bracket as major high-speed rail and mega-bridge schemes rather than typical urban transit upgrades.

    For NYC and the Hudson River corridor, a project of this cost magnitude usually locks in long-term contractor and supplier capacity, which can tighten labour and specialist tunnelling plant availability for smaller regional works for several years.

    Because this is tagged as both Projects and Contract Award in our database, it will likely serve as a reference point for risk allocation and pricing on future US East Coast underground works, especially where federal funding and multi-jurisdictional governance structures resemble the GDC model.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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