Work continues on NYC megaprojects, despite $18B federal funding pause
Published on Oct 8, 2025
Work continues on NYC megaprojects, despite $18B federal funding pause
Crews remain active on the Gateway Tunnel and Second Avenue subway, but a prolonged government shutdown or review could affect future progress.
But few things unsettle the construction industry more than uncertainty. The prospect of federal funding pauses, even a temporary one, sends a bad message to an industry that relies on long-term planning, said Carlo Scissura, president and CEO of the New York Building Congress, a building industry advocacy group.
“This is an industry that likes stability,” Scissura told Construction Dive. “When [contractors] feel like, at any given time, government could do something like this, that’s where the worry comes in because you have to remember, this industry has to plan out ordering materials, hiring staff workers, getting people trained to do certain jobs. So, it takes time and stability becomes critical.”
So far, Scissura said there has been no direct hit to jobsites or project schedules. Work on both the Gateway project and Second Avenue subway will move forward in the short term, he said.
“Right now, there’s really no effect,” Scissura told Construction Dive. “The work continues, there are people on the job today.”
But if the freeze lingers, the effects could widen.
“The real question is down the road,” he said. “In a few weeks, if things haven’t moved and the federal government hasn’t released the pause, then we may have questions.”
Other projects
Scissura added that other high-profile infrastructure projects in New York City remain full steam ahead.
“The airport work at Kennedy is continuing. The planning for the Port Authority Bus Terminal is continuing. Amtrak is going to issue an RFP for renovating Penn Station within a month or so,” Scissura told Construction Dive. “Really, the only two megaprojects that the government is looking at today are these two: Gateway and Second Avenue.”
Nevertheless, at the national level, the Associated General Contractors of America warned the move underscores how precarious large federal projects can be.
