President Donald Trump declared Monday that Washington will not pay a single cent beyond the approved budget for the massive Gateway rail tunnel linking New York and New Jersey, warning that taxpayers will not absorb any unexpected cost increases tied to the multibillion-dollar project.

In a post on Truth Social, Trump criticized the $16 billion effort to build new rail tunnels beneath the Hudson River, describing it as a potential financial debacle and cautioning that it could mirror the ballooning expenses associated with California’s high-speed rail project.

“I am opposed to the future boondoggle known as ‘Gateway,’ in New York/New Jersey, because it will cost many BILLIONS OF DOLLARS more than projected or anticipated,” Trump wrote. “Under no circumstances, will the Federal Government be responsible for ANY COST OVERRUNS — NOT ONE DOLLAR!”

Trump indicated that federal officials are open to discussions with leaders from New York and New Jersey to ensure the project proceeds with tighter oversight and better preparation. However, he emphasized that federal taxpayers will not shoulder expenses that exceed the authorized amount, stressing that “hard work and proper planning is done, NOW.”

The Gateway initiative is widely viewed as one of the most consequential infrastructure undertakings in the country. It calls for constructing two additional rail tunnels beneath the Hudson River, a vital transit corridor used by roughly 200,000 commuters each day traveling between the two states.

Lawmakers have approved $16 billion for the undertaking, with the federal government committing more than $11 billion of that total.

Funding for the project was placed on hold for over four months while the administration reviewed contracts to ensure they complied with updated regulatory requirements.

Reports from The New York Times and Politico indicated that approximately $205 million in reimbursements were withheld during that period, prompting a halt in certain construction activities and leading to the temporary layoff of about 1,000 union laborers.

After a federal court intervened last week, the administration resumed disbursing funds, transferring $30 million to the Gateway Development Commission. Additional payments are expected in the coming weeks. Transportation Department officials have said they are acting in accordance with the court’s order.

New York Gov. Kathy Hochul and Senate Minority Leader Chuck Schumer, both Democrats, sharply criticized the funding interruption and called for the immediate and complete restoration of federal support.

Attorneys general from New York and New Jersey filed suit against the administration, contending that the funding suspension negatively affected workers and delayed essential progress on the project.

Trump cast his position as a matter of prudent budgeting, citing what he described as California Gov. Gavin Newsom’s “Railroad to nowhere” as an example of runaway costs and poor management that he said must not be repeated.

He also rejected claims that he had sought to tie federal funding to renaming Penn Station in his honor, calling those reports “FAKE NEWS” and asserting that the suggestion came from others, not from him.

The dispute highlights ongoing friction between the federal government and Democrat-led states over infrastructure spending, regulatory oversight, and fiscal controls.

Although construction work remains limited while full reimbursement is pending, Trump’s message was clear: the federal government is prepared to back major infrastructure improvements, but it will not provide unlimited financial guarantees.

With billions of taxpayer dollars involved, the Gateway project has emerged as a focal point in the administration’s effort to curb what it considers excessive spending while still moving forward with critical national infrastructure investments.