Hudson Tunnel Project Funds & a Wisconsin Campaign: A Family Affair?

Political Donations Raise Ethical Questions for Transportation Secretary

The $16 billion Hudson Tunnel Project, a critical infrastructure undertaking to improve commuter rail service between Manhattan and New Jersey, has become entangled in a web of political donations and potential conflicts of interest involving U.S. Transportation Secretary Sean Duffy. After the White House froze federal grant funding for the project in the fall of 2025, citing concerns about diversity and equity measures, lobbyists with a vested interest in the tunnel’s completion donated $2,500 to the campaign of Michael Alfonso, a political newcomer running for Congress in Wisconsin’s 7th Congressional District. Alfonso’s connection to Duffy – he is the former Congressman’s son-in-law – has raised eyebrows and prompted scrutiny of the donations.

The contributions are part of a larger pattern of donations from lobbyists, business executives, and political action committees tied to industries regulated by Duffy’s department – including rail, highways, shipping, and air travel. Duffy, who previously represented Wisconsin’s 7th Congressional District for nearly a decade before resigning in 2019, is openly supporting his son-in-law’s campaign, attending fundraising events and appearing in campaign materials. While legally permissible, experts say the situation creates the appearance of impropriety, raising questions about whether donors are attempting to gain influence through contributions to a relative of a key decision-maker.

“The law, as it stands, provides very little constraint,” said Daniel Weiner, director of the Elections and Government Program at the Brennan Center for Justice. “There’s a very large gulf between what is legal and what is ethical. Obviously, this raises numerous ethical questions.”

This isn’t an isolated incident within the Trump administration. During his first term, then-Transportation Secretary Elaine Chao faced similar criticism for allegedly giving preferential treatment to Kentucky officials for infrastructure grants, a state closely tied to her husband, Senate Majority Leader Mitch McConnell. Similarly, under President Obama, Agriculture Secretary Tom Vilsack navigated questions about the separation between his official duties and his wife’s congressional campaign. These instances highlight a recurring challenge: balancing familial ties with the responsibilities of public office.

Alfonso, 26, has been endorsed by President Donald Trump and is benefiting from significant support from his father-in-law. Duffy has actively campaigned for Alfonso, appearing at campaign events and leveraging his connections to attract donors. A December fundraiser, for example, was sponsored by the political action committee for Delta Air Lines. While Duffy’s spokesperson, Nathaniel Sizemore, stated that the Secretary attends fundraising events in his personal capacity and that regulatory decisions are guided by career professionals, the optics remain problematic.

The donations aren’t limited to those with direct interests in the Hudson Tunnel Project. Jeffrey Miller, a lobbyist whose firm represents companies with interests before the Department of Transportation, including those involved in aviation and GPS technology, donated a combined $8,500 to Alfonso’s campaign through himself and his company’s COO. Notably, neither Miller nor his company had previously donated to Duffy or his successor, Tom Tiffany. Shortly after these donations, Duffy announced a pilot program to test electric vertical takeoff and landing (eVTOL) technology, with one of the participating companies being Archer Aviation, a client of Miller’s firm.

Alfonso’s campaign has also received support from PACs representing Lockheed Martin and T-Mobile, both of which have ongoing business with the Department of Transportation. Brightline, a high-speed rail service in Florida, also contributed, despite facing scrutiny over safety issues and a recent $42 million grant from Duffy’s department aimed at improving safety along its lines.

The situation underscores the challenges of regulating campaign finance and ensuring ethical conduct within government. While the donations themselves may not be illegal, they raise concerns about the potential for undue influence and the erosion of public trust. As Alfonso’s campaign gains momentum, and with the Hudson Tunnel Project’s funding still uncertain, scrutiny of the connections between donations and policy decisions is likely to intensify. The resumption of construction on the tunnel remains precarious, with the bistate commission overseeing the project warning of potential disruptions if federal funding doesn’t continue to flow.