New York State's budget director is insisting there is an agreement in place for federal funding of the rail tunnel project under the Hudson.

In a letter to the deputy administrator of the Federal Transit Administration, Robert Mujica says a 50/50 funding deal was discussed at a White House meeting last August.

Just this past Friday, a federal transit official says the agreement was "non-existent."

The current tunnel is more than a century old, was damaged during Hurricane Sandy, and is in critical need of repair.

A spokesman for the Gateway Development Corp, the group overseeing the project, says they're confident President Trump will work with them on funding in 2018.