Hudson Tunnel Project secures historic $6.88B federal funding grant

“History will remember those who led the effort to get us to a point of no return,” Gateway Development Commission CEO Kris Kolluri said during a Monday ceremony in New York to mark securing $6.88 billion in historic federal funding for the Hudson Tunnel Project. “And those who build this project.”

The July 8 event brought together leaders from New Jersey and New York across all levels of government as well as project stakeholders and others.Officials announced:

• Signing a Full Funding Grant Agreement through the Federal Transit Administration’s Capital Investment Grants (CIG) program to provide $6.88 billion. It is the largest grant the FTA has ever signed in addition to the largest project in the history of the United State Department of Transportation.



• The approval of three Railroad Rehabilitation and Improvement Financing (RRIF) loans through DOT’s Build America Bureau. A total $4.1 billion will provide financial support at below-market interest rates.

 

The more than $11 billion federal share of the $16 billion Hudson Tunnel Project represents a 70/30 split between the federal government and local project partners (New Jersey, New York, and the Port Authority of New York and New Jersey). The HTP is estimated to create 95,000 jobs and nearly $20 billion in economic activity.

It will result in four modern tracks between New Jersey and New York. The work includes:

• A new double-track tunnel between the Bergen Palisades and Manhattan;



• The rehabilitation of the North River Tunnel that was damaged during Superstorm Sandy; and



• A new concrete casing at Hudson Yards to allow the new tunnel to connect to New York-Penn Station.

 

The new tunnel is slated to begin service by 2035. Meanwhile, the existing tunnel's full rehabilitation will be complete by 2038.

Getting here

As NJBIZ has reported, the project has taken major strides recently, with construction underway on both sides of the Hudson River as well as other notable developments.

Officials detailed the long journey to this point. They recalled the different circumstances leading to its derailment, lauding President Joe Biden and his administration for their steadfast support.

“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,” said U.S. Transportation Secretary Pete Buttigieg, who was unable to attend the New York event, in a statement. “Today, President Biden is making good on his promise to fix that and build the Hudson Tunnel Project. Using funds from the President’s Infrastructure Law, we are building a new tunnel that improves train travel for millions of Americans and revitalizes a rail corridor that is essential to so much of the nation’s economy.”

“The Gateway race was truly a marathon with its twists, its turns, its bumps,” said Senate Majority Leader Chuck Schumer, D-N.Y. “But we laced up. We kept up the pace and we made it. So today, I’m proud to say the massive $6.8 billion infusion of federal funds the light at the end of the Gateway Tunnel is signed, sealed and delivered.”

A 'great American project'

“I know this is a regional project people think of it in that way,” said U.S. Sen. Cory Booker, D-N.J. “They think of it as a project between New York and New Jersey. But that’s simply not true. This is a great American project.”

Booker said he's particularly excited about this project because it is not just an infrastructure investment or solely for the overall economy.“The dollars being invested here will create tens of thousands of union jobs," he explained, "affecting hundreds of thousands of people, families and children who will not only see solid jobs and solid well-being, but good health care and a brighter future.”

"When we invest in ourselves, the dividends that we pay cannot be measured. This region for decades to come will benefit from this investment," Booker continued.

Gov. Phil Murphy thanked the gathered leaders and stakeholders for their partnership in bringing this moment to fruition.

“By the way, our side of the Hudson historically has not covered itself in glory on this project,” said Murphy, referencing the cancellation of the ARC iteration of this project under the Christie administration. “So, I’m honored to be here representing a new day dawning not just in general, but on the Jersey side of the house.”





Going beyond the numbers and project scope, Murphy talked about how this project will eventually impact people in their daily lives, such as getting to where they need to on time. That, of course, is a relevant issue with recent Amtrak/NJ Transit meltdowns in the news lately.

“This is a gamechanger,” Murphy stressed. “I think we need to think of this, not just in the ‘wow, big number reality’ what it will do for this region, for both of our great states. But also, the lives that will be transformed.”

Moving forward

“Today is a momentous occasion in a years-long collaboration to build a new Hudson River Crossing, bringing together USDOT, Congress, two states, Amtrak, the Port Authority, local officials, labor partners, and more,” said USDOT Deputy Secretary Polly Trottenberg. “Together, we are investing in a project that will move Americans forward and contribute to the economic growth of our nation.”

“Finalizing the FFGA and the RRIF loans for this project is a key milestone that enables us to confidently say there is a light at the end of the tunnel for commuters struggling with unpredictable service,” said New Jersey GDC Commissioner and co-Chair Balpreet Grewal-Virk.

Amtrak board Chair and GDC Vice Chair Tony Coscia has long pursued this project. He said the new Hudson River Tunnel will supercharge rail connections across the region and the nation to improve and expand service in ways that were only dreams in the past.

“We celebrate this milestone today because of the many leaders and partners that came together for a better future,” said Coscia.





“Today marks the culmination of securing funding for a project that stands as the most consequential undertaking of our generation and for our next 100 years in the region,” said Kevin Corbett, president and CEO, NJ Transit.

He said that the commitment from all levels of government underscores the "profound" understanding of the project’s significance.

“As a primary user of the current tunnels, no one knows better than NJ Transit and our riders about the desperate need for the new tunnels,” said Corbett.

Modern history in the making

Kolluri said he and his team, their partners and stakeholders have worked tirelessly for 23 months to complete the funding puzzle.

“After years of planning and persistence, the Hudson Tunnel Project’s days of uncertainty are finally behind us,” said Kolluri. “Today we have secured the funding needed to see this project through.”

Project delivery partner MPA Delivery Partners a joint venture of Mace, Parsons Corp. and Arcadis congratulated GDC on the funding.

“A milestone project supported by the bipartisan Infrastructure Investment and Jobs Act (IIJA), the Hudson Tunnel Project represents the largest investment in a mass transit project in modern history,” MPA Delivery Partners told NJBIZ in a statement. “MPA was selected to serve as the delivery partner for this once-in-a-generation project in February 2024 and looks forward to working with the Gateway Development Commission on unlocking the full economic and societal potential of the Hudson Tunnel Project and delivering this important project for the people of New York and New Jersey.”

Murphy closed out his remarks by emphasizing that it will not happen overnight. He pointed to the Big Dig project in Boston, where he was born.

“Please have some patience,” said Murphy. “This is not going to be overnight. But when it finally hits it will transform, literally, millions of lives.”

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