The Gateway Development Commission (GDC) signed a Full Funding Grant Agreement (FFGA) with the Federal Transit Administration (FTA) for USD 6.88 billion in federal funding for the Hudson Tunnel Project (HTP) and closed on Railroad Rehabilitation and Improvement Financing (RRIF) loans from the Build America Bureau totaling USD 4.06 billion to fund the local share of the project.
With these actions, GDC has secured the entire USD 16 billion commitment needed to complete the HTP. This includes USD12 billion in federal funding – the largest federal funding commitment to a rail transportation project in modern history.
“Today marks a significant milestone on the path to ensuring the success of our nation’s most vital infrastructure project.” Thanks to the leadership of our partners, both in Congress and across the Hudson, our federal government will be covering over 70 percent of the total cost of the Gateway Tunnel Project. As the main artery of our nation’s economy continues to be pushed to its limits, we are now one step closer to transforming the 100-year-old infrastructure under the Hudson River. New Jersey thanks the Biden-Harris Administration for delivering this critical investment so that our region’s transportation system will be able to support a new century of American leadership.”
– Phil Murphy, New Jersey Governor.
The project is expected to create 95,000 jobs, and nearly USD 20 billion in economic activity.
“New York City is the economic and cultural hub of the nation. The Hudson Tunnel Project is critical to provide modern rail transit for the millions of people who travel to and from the City every day and to ensure the New York metro region continues to thrive,” said Alicia Glen, New York GDC Commissioner and Co-Chair
“The new Hudson River Tunnel will supercharge the rail connections across our region and to the nation,improving and expanding rail service in ways we’ve only been able to dream about in the past. We celebrate this milestone today because of the many leaders and partners that came together for a better future. Thank you, President Biden, Secretary Buttigieg, Sen. Schumer, and supporters in Congress, including the New York and New Jersey delegations, and our partners at the GDC and New York and New Jersey, including NJ TRANSIT and the Port Authority.”
– Tony Coscia, Amtrak Board Chair and GDC Vice Chair
Hudson Tunnel Project to be completed by 2038
The HTP will eliminate one of the biggest risks of failure on the Northeast Corridor by building two additional tracks and rehabilitating the existing North River Tunnel, resulting in four modern tracks between New York and New Jersey.
The new tunnel will be in service by 2035 and the full rehabilitation of the existing tunnel will be complete by 2038.
The total USD 16 billion cost of the HTP will be split 70/30 between the federal government and the project’s local partners: New York, New Jersey, and the Port Authority of New York and New Jersey (PANYNJ).
This arrangement saves the local partners multiple billions of dollars compared to the original plan to split the project costs 50/50.
The FFGA signed represents a commitment from FTA to provide USD 6.88 billion for the HTP through the New Starts Capital Investment Grant (CIG) Program. This is the largest grant in the history of the CIG Program and the largest single funding source for the HTP.
The federal government has also committed USD 3.8 billion to the project through USDOT’s Federal-State Partnership for Intercity Passenger Rail (FSP) Program, USD 292 million from the Bipartisan Infrastructure Law’s Mega grant program, and USD 25 million through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Program. Amtrak is contributing an additional USD 1 billion.
The low-interest RRIF loans that GDC closed on will fund the local share of the project. These three loans, totaling USD 4.06 billion, represent the largest aggregate loan the USDOT has provided through the RRIF program.
Construction of the HTP started on both sides of the Hudson River in November 2023 and is expected to create 95,000 jobs and generate USD 19.6 billion in economic activity.
In New Jersey, the Tonnelle Avenue Bridge and Utility Relocation Project is building a new roadway bridge to allow for a connection to the new tunnel portal and an access point for Tunnel Boring Machines.
In Manhattan, work is underway on the Hudson Yards Concrete Casing Section 3 (HYCC-3)
Project that will preserve a rail right-of-way to link the new Hudson Tunnel to New York Penn Station. The actions taken today also enable GDC to move forward with heavy construction and tunnel boring activity.
Heavy construction will begin in the coming weeks with the Hudson River Ground Stabilization (HRGS) Project, which will stabilize the riverbed on the Manhattan side of the Hudson River to enable the Tunnel Boring Machines to excavate the new tunnel.
By the end of 2024, GDC will have awarded contracts for more than USD 5 billion in construction activity, including contracts to build sections of the tunnel passing through the Palisades in New Jersey and going through the Manhattan bulkhead under Hudson River Park, and will have ordered the first Tunnel Boring Machine.
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