Hudson Tunnel Project Funds & a Wisconsin Campaign: A Conflict of Interest?

A $16 billion federal project to improve rail service between New York and New Jersey stalled in February after the government temporarily halted funding, a move that coincided with a series of donations to a Republican congressional candidate in Wisconsin from lobbyists and companies with a direct stake in the project’s success.

The Hudson Tunnel Project, intended to alleviate congestion for Amtrak and NJ Transit passengers, faced a funding freeze in the fall of 2025 due to concerns raised by the White House regarding diversity and equity measures, according to reports. Simultaneously, Michael Alfonso, a political newcomer running in Wisconsin’s 7th Congressional District, received $2,500 in contributions from individuals connected to industries that benefit from, or are regulated by, the Department of Transportation (DOT).

While Alfonso holds no direct influence over the Hudson Tunnel Project, his father-in-law, Sean Duffy, is the current Secretary of the U.S. Department of Transportation. The donations, first reported by ProPublica, are among numerous contributions to Alfonso’s campaign from lobbyists, business executives, and political action committees tied to transportation-related sectors.

Duffy previously represented Wisconsin’s 7th Congressional District for nearly a decade before resigning in 2019. His departure created an open seat now being contested by Alfonso, who has been endorsed by former President Donald Trump. Alfonso, 26, has worked in construction, and podcasting.

According to Federal Election Commission records, many of the Alfonso donors with transportation interests had not previously contributed to Duffy or his predecessor, Tom Tiffany. This pattern, while legal, raises ethical questions about the potential for influence peddling, according to 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,” Weiner said.

This situation echoes past instances of ethical concerns surrounding Cabinet officials and their families. During the Trump administration, Transportation Secretary Elaine Chao faced scrutiny over potential preferential treatment given to Kentucky officials for infrastructure grants, a state with close ties to her husband, then-Senate Majority Leader Mitch McConnell. Chao’s office denied any favoritism at the time. Similarly, in 2012, Agriculture Secretary Tom Vilsack addressed questions about the separation between his department’s business and his wife’s congressional campaign.

Duffy has actively supported his son-in-law’s campaign, appearing at campaign events, including a “meet and greet” in Wausau, Wisconsin, and a December fundraiser. The December fundraiser was sponsored in part by the political action committee for Delta Air Lines, with an explicit disclaimer stating Duffy was not soliciting funds at the event.

Alfonso’s campaign did not respond to requests for comment. In a statement, Duffy spokesperson Nathaniel Sizemore said, “The Secretary attends fundraising events in his personal capacity. Regulatory decisions are guided by career safety professionals, the law, and the facts.”

Alfonso’s campaign utilized the same fundraising consultant as Duffy, Kirstin Hopkins, and received support for advertisements and mailers from the Northwoods Future PAC, funded with $1 million from Duffy’s former campaign committee. This familial advantage has drawn criticism from some Wisconsin Republicans.

As of the end of 2025, Alfonso had raised over $305,000. Individual contributions are limited to $3,500 per election, and PACs can contribute up to $5,000.

Among Alfonso’s donors is Jeffrey Miller, a finance chair of Trump’s most recent inaugural committee, who, along with his company’s chief operating officer, donated a combined $8,500 in December. Miller’s firm, Miller Strategies, had no prior donors to Duffy or Tiffany, according to FEC records. Lobbying disclosure reports show Miller lobbied the Transportation Department in 2025 on behalf of multiple companies and organizations, advocating for issues including airport signage, aviation permitting, and advancements in GPS technology, including electric vertical takeoff and landing aircraft (eVTOL).

Earlier this month, Duffy announced a pilot program to test eVTOL technology in multiple states, with Archer Aviation among the companies selected to participate. In a promotional video, Duffy expressed enthusiasm for the technology, envisioning “Ubers in the air.”

Miller did not respond to requests for comment.

Alfonso graduated from the University of Wisconsin in 2022 with a math degree and later worked in podcasting. He met Trump at his wedding to Duffy’s daughter, Evita, held at a Trump golf course in New Jersey.

Other donors to Alfonso’s campaign include political action committees for Lockheed Martin, T-Mobile, and Brightline, a high-speed train service in Florida. Brightline has faced scrutiny over numerous fatalities at its crossings, and Duffy had previously pledged to perform to improve safety along the line, announcing a $42 million grant in September to that effect.

The Hudson Tunnel Project resumed construction after a court order released the frozen funds, but the bistate commission overseeing the project has warned of potential future disruptions if federal disbursements are not consistent.

Venture Government Strategies, whose lobbyists donated $2,500 to Alfonso, did not respond to requests for comment.

Alfonso’s campaign platform focuses on issues such as education, healthcare, and immigration, but does not specifically address transportation. Yet, he has received support from General Motors, which lobbies the DOT on issues related to fuel economy and vehicle safety. In December, GM’s political action committee donated $1,000 to Alfonso.

In mid-December, Duffy appeared in a promotional video showcasing a limited-edition Corvette, highlighting a travel app developed in partnership with the Department of Transportation.