U.S. Reverses Guidance That Impeded Funding for Hudson Rail Tunnel 02/16/2021 | 05:36pm EDT Send by mail : Message : By Ted Mann WASHINGTON -- The Transportation Department on Tuesday rescinded a Trump administration opinion that had effectively blocked federal funding for a new rail tunnel under the Hudson River linking New Jersey and New York City. The DOT's Federal Transit Administration rescinded guidance issued in 2018, which effectively blocked project sponsors from counting funds borrowed from federal programs as part of the local share of a project's financing. New York and New Jersey have pledged $5.5 billion toward the $13 billion cost of the tunnel, but planned to borrow those funds from low-cost federal loan programs and pay them back over time.