Stock Markets February 5, 2026

Trump Proposed Lifting Tunnel Funding Freeze in Return for Renaming Major Transportation Hubs, Source Says

Reported offer linked release of $16 billion Gateway Hudson River tunnel funds to renaming Dulles Airport and Penn Station after the president

By Priya Menon
Trump Proposed Lifting Tunnel Funding Freeze in Return for Renaming Major Transportation Hubs, Source Says

A source said the U.S. president last month offered to lift a freeze on federal support for the $16 billion Gateway Hudson River tunnel project if Democratic Senator Chuck Schumer would back renaming Washington Dulles Airport and New York Penn Station for the president. The proposal was reportedly rejected and a court hearing is scheduled as states seek restoration of funding that would otherwise halt construction and cost about 1,000 jobs.

Key Points

  • A source reported the president offered to lift his October funding freeze on the $16 billion Gateway Hudson River tunnel if Senator Chuck Schumer backed renaming Washington Dulles Airport and New York Penn Station after the president.
  • Senator Schumer reportedly rejected the proposal, stating he lacked the authority to rename the properties; the White House did not comment and Schumer's office declined to comment.
  • An emergency court hearing on Friday will consider restoring tunnel funding as construction is scheduled to stop on Friday and about 1,000 construction workers could be laid off; the project had received roughly $15 billion in federal support under the prior administration, and involves repairs to an existing tunnel and building a new one for Amtrak and commuter services.

A source said that last month the U.S. president proposed removing a freeze on federal funding for the $16 billion Gateway Hudson River tunnel project in exchange for Democratic Senator Chuck Schumer supporting the renaming of two major transportation landmarks - Washington Dulles International Airport and New York Penn Station - to bear the president's name.

According to the account, the proposal was initially reported by other outlets and was promptly turned down by Senator Schumer, who told the White House he did not have the authority to rename the facilities, a source confirmed. The White House did not provide a response when asked for comment, and Schumer's office declined to comment.

Separately, state officials from New York and New Jersey have filed an emergency request to restore funding for the Gateway tunnel. A U.S. judge will hold a hearing on Friday on that request as construction is due to stop on Friday if federal support is not reinstated, a halt that would put roughly 1,000 construction workers out of work. The president initially froze the funding in October.

Senator Kirsten Gillibrand of New York, a Democrat, criticized the reported suggestion late Thursday, calling it "ridiculous" and saying that naming rights should not be traded as part of negotiations. She said the president's actions prioritized personal interests over the "good-paying union jobs" tied to the project and over the substantial economic benefits the Gateway tunnel is expected to bring.

The initiative, which received about $15 billion in federal support under the prior administration, covers repairs to an existing rail tunnel under the Hudson River and the construction of a new tunnel. The project is intended to serve Amtrak and state commuter rail lines between New Jersey and Manhattan and is a critical link for rail travel between the two states.

New York Governor Kathy Hochul responded on social media to the reported proposal by issuing a mock "counteroffer" suggesting that a Manhattan skyscraper bearing the president's name be renamed "Hochul Tower."

Since returning to office in January, the president has sought to affix his name to a range of federal assets and programs. The name has been attached to several Washington buildings, plans for a class of Navy warships, a visa program aimed at wealthy foreigners, a government-run prescription drug website, and federal savings accounts for children. In December, the board of a major performing arts center that the president reconstituted added his name to the institution. His name was also added in December to the United States Institute of Peace building in Washington, after federal action that effectively took control of the nonprofit.

The president has publicly vowed to overhaul Washington Dulles International Airport in Virginia, a major United Airlines hub and the principal international airport serving the U.S. capital region, calling the facility inadequate. Legislation has been introduced in Congress by some Republicans proposing to rename the airport after the president, and many airline officials have expressed the belief that the president wants the airport renamed for him. The airport currently honors John Foster Dulles, who served as U.S. secretary of state in the 1950s.

In October, the U.S. Treasury released a draft design for a $1 coin featuring the president to mark 250 years since the Declaration of Independence in 2026.


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Risks

  • Construction stoppage and layoffs - If federal funding is not restored, about 1,000 construction workers on the Gateway project face immediate job losses, impacting the construction sector and associated supply chains.
  • Project delay and economic impact - Halting the project could delay necessary repairs and new construction for a critical rail link between New Jersey and Manhattan, affecting transportation infrastructure and regional economic activity.
  • Political and naming controversies - Efforts to tie federal infrastructure funding to naming rights raise legal and governance uncertainties that could affect federal-state relations and the pace of infrastructure projects.

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