The US Department of Transport (USDOT) signed the USD 6.9 billion grant for Hudson River tunnel project and announced the approval of three loans totalling USD 4.1 billion.
The grant agreement signed in July allows Federal Transit Administration (FTA) to support the construction of the tunnel and rehabilitation of the existing North River tunnel, which is the largest grant ever signed by FTA.
“For decades, Americans watched one of the most heavily-used train tunnels in the hemisphere deteriorate and become a bottleneck that affected travelers from New England to the Mid-Atlantic and beyond,” the U.S. Transportation Secretary Pete Buttigieg said, adding that “using funds from the President’s infrastructure law, we are building a new tunnel that improves train travel for millions of Americans and revitalises a rail corridor that is essential to so much of the nation’s economy.”
The three loans are delivered through Railroad Rehabilitation Improvement Financing programme (RRIF) which will provide financial support at below-market interest rates.
These funds “are delivering on a promise to the riders of New York, New Jersey, and along the entire Northeast Corridor to invest USD 11.7 billion in the Gateway project, and an additional USD 4.1 billion in federal loans,” the U.S. Deputy Transportation Secretary Polly Trottenberg said.
When the new tunnel and the rehabilitated tunnel open the project will provide four modern rail tunnels for Amtrak and NJ Transit trains. In addition, the project will provide the capability to significantly expand capacity in the future through the 4 tracks into and out of New York
Additional project benefits include building resiliency and safeguarding rail operations against future extreme weather events, managing floods on both sides of the Hudson River, and creating a safer environment for first responders, maintenance workers, and the public, especially in the event of an evacuation.
The construction works for the new Hudson River tunnel project were launched in November 2023 and the tunnel is expected to be completed in 2038.
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