New York has confirmed that the federal government released another $77m for new tunnels and bridges connecting the state to its neighbour New Jersey, amid a feud with United States President Donald Trump.

On Tuesday, New York Governor Kathy Hochul appeared at a construction site alongside union leaders to push for the release of the remaining funds, which were frozen in October amid a record-breaking government shutdown.

“It cannot continue like this,” Hochul, a Democrat, told workers at the site.

“The workers need to know that that job is going to be there: the one they signed up for, the one they trained for, the one they’re so proud of. It has to be there year after year, until this project is done.”

At stake is the fate of the Northeast Corridor project, a central part of the Gateway Program, an interstate initiative to expand and renovate the aging tunnels that the link metropolitan hubs between New York and New Jersey.

The federal government had pledged billions in support for the project, considered to be vital for transportation and safety reasons.

But on October 1, one day into a historically long government shutdown, the Trump administration announced it would suspend $18bn in funding for the project that had already been granted.

The move was designed to pressure Democrats — and Democrat-aligned jurisdictions — to comply with Republican demands to end the shutdown.

But Trump hinted at the time that some of the programming cuts could be permanent. The shutdown ended after 43 days in November, and still, the funding for the New York City tunnel project remained frozen.

Democrats decried the freeze an act of political revenge. “It should concern every American that the Trump Administration is willing to harm working families and our nation’s economy to punish Democrats,” Representative Jerry Nadler of New York said in response to the funding suspension.

But Trump has continued to withhold the funds. On February 3, the states of New York and New Jersey announced they were suing the Trump administration to release the funds.

“After four months of covering costs with limited operating funds, the states warn that construction will be forced to completely shut down as soon as February 6 unless federal funding resumes,” attorneys general Letitia James of New York and Jennifer Davenport of New Jersey said in a statement at the time.

Three days later, as the states hit that February 6 deadline, a US district judge ordered the funds to be released, citing the potential for irreparable harm to the project.

The ruling required more than $200m in reimbursement funds to be paid out to the states.

Over the last week, the federal government responded by releasing $30m, in addition to the $77m announced on Tuesday. But officials said it was still not enough.

At Tuesday’s news conference, union leader Gary LaBarbera emphasised that new construction was a necessity.

“Let me tell you: The existing tunnels, the trans-Hudson tunnels, are over a hundred years old. Their structural integrity has failed,” he said.

He added that the issue of maintaining safe transportation should be nonpartisan

“This isn’t a Republican tunnel or a Democratic tunnel, right? This should not be a political tug of war,” he said.

Governor Hochul, meanwhile, used part of her speech to address the president. “ Let’s stop the chaos. Let’s stop the insanity. Let them work, Mr President,” she said, in a gesture to the workers around her.

But this week, on his social media platform Truth Social, Trump doubled down on his opposition to the 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.

“It is a disaster! Gateway will likewise be financially catastrophic for the region, unless hard work and proper planning is done, NOW, to avoid insurmountable future cost overruns.”

He also denounced reports that he would un-freeze the funding in exchange for renaming New York’s Penn Station after him, as well as Washington’s Dulles airport.

“IT IS JUST MORE FAKE NEWS,” Trump wrote, adding that such a proposal was “brought up by certain politicians and construction union heads”, not him.

Still, his White House Press Secretary Karoline Leavitt appeared to confirm the reports last week during a news briefing.

“Why not?” she told a reporter. “It was something the president floated in his conversation with [Senate Minority Leader] Chuck Schumer.”

On Tuesday, reports emerged that the Trump Organization had filed trademark claims for any airports bearing the president’s name.

Republicans in Florida’s legislature have already sought to rename the international airport in Palm Beach for Trump, citing his nearby golf courses and residence at Mar-a-Lago.