To ensure that commercial real estate developers can build the communities of our future, all levels of government must ensure proper maintenance and investment in transportation infrastructure. Whether highways, roads, freight rail, ports or public transport, transport infrastructure helps regions realize their economic potential. A lack of coordination between levels of government and internationally threatens major infrastructure projects, which require years of planning and stability to complete. However, recent regional success stories provide reasons to be optimistic about the future of transportation infrastructure. In the future, state and local governments have the opportunity to follow suit. As for the federal government, one of NAIOP’s three federal priorities for 2026 Congress is scheduled to pass a multi-year authorization for surface transportation programs before they expire on September 30.
A notable example of disruption to a vital transportation infrastructure project is the status of the Gateway Hudson Tunnel project as of October 2025. This project began in 2011 with the goal of building a new tunnel for rail on the Northeast Corridor line between New Jersey and Manhattan to replace the century-old North Tunnel. When Hurricane Sandy severely damaged the North Tunnel the following year, the need for the Gateway Hudson Tunnel increased. By 2023, the federal government had allocated $12 billion of the project’s estimated $16 billion price tag, largely through the bipartisan Infrastructure Investment and Jobs Act, and construction began.
However, when the longest government shutdown in history began in October 2025, the Office of Management and Budget immediately withheld all federal funding for the project. Funding remained frozen when the government returned in November, halting construction on February 5. Leaders from NAIOP’s New York City Metro and New Jersey chapters, along with other CRE industry leaders, signed on a letter to the Trump administration requesting immediate release of funds. The Northeast Corridor supports 20% of the national GDP, while the current dilapidated tunnel carries 200,000 commuters every day, making this project critical to economic development in the region. Fortunately, a judge ordered the funds to be frozen a day after construction stopped, and an appeals court rejected the government’s emergency freeze, resulting in the $30 million payout on February 14. Litigation continues, resulting in uncertainty over billions of dollars in funding for a vital, decades-long project.
Another major transportation infrastructure project that came under threat earlier this year was the Gordie Howe International Bridge, which crosses the Detroit River and connects Detroit, Michigan, and Windsor, Ontario. This time, however, the threat related to a project that had already been completed. Planning for the bridge began in 2012 as an alternative to the Ambassador Bridge, with Canada providing financing and splitting ultimate ownership jointly between the governments of Canada and Michigan. Construction began in 2018 and was largely completed by February 2026, with plans to open this year. On February 8, the Trump administration publicly threatened that it would prevent the bridge from opening as part of the ongoing trade dispute with Canada. Although Prime Minister Mark Carney has expressed confidence that the dispute will be resolved, each week of delay would mean costs of up to $7 million. This kind of uncertainty at the end of a decades-long, multi-billion dollar infrastructure project could discourage investment in the future.
While these large, federally funded projects receive a lot of attention, many of the opportunities for successful transportation financing lie at the local level. Moreover, NAIOP chapters can most effectively make their voices heard at the local level. Last year, NAIOP Charlotte played a critical role in the successful campaign to pass a ballot proposal in Mecklenburg County that will generate $20 billion for transportation infrastructure investments over the next thirty years. You can read more about this success here. Similarly, the Gulf Coast Chapter of NAIOP took a strongly supportive position on a 2025 ballot proposal that would allow the city to issue bonds raising $415 million to improve streets, bridges, buildings, parks, equipment and more. It passed with 77% support from voters.
There is work to be done at all levels of government to ensure proper investment in and maintenance of infrastructure. As uncertainty increases and state and local governments face budget shortfalls, NAIOP must advocate for transportation infrastructure policies that enable economic growth and commercial real estate development.
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