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Hudson Tunnel project to receive $6.9 billion in federal funds

The funds come from the Federal Transit Administration's Capital Investment Grants program.
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The Gateway Development Commission, which is leading the $16 billion Hudson Tunnel project, is slated to receive a $6.9 billion federal grant — the largest federal grant ever awarded to a mass-transit project.

The new tunnel will support an existing pair of 100-year-old single-track tunnels that have been deteriorating since Hurricane Sandy caused them to flood in 2012, the New York Times reported. The grant will allow the commission to begin soliciting companies to construct a parallel tunnel that would open for service in 2035.

Last year, New York Gov. Kathy Hochul and New Jersey Gov. Phil Murphy agreed to split the local funding portion of the project before seeking federal funding, the Times reported. The federal portion is not expected to be finalized until early next year.

Amtrak, which owns the tunnels, will shut down the tracks for repairs one at a time until the new tunnel opens. Analysts from the Regional Plan Association — a non-profit regional planning firm — predict that trans-Hudson River travel demand is likely to meet or exceed pre-pandemic ridership levels, the Times reported.

The federal dollars will come from the Federal Transit Administration’s Capital Investment Grants program. The commission originally asked for $6.65 billion, but was granted an additional $200 million-plus due to the rising cost of construction.

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More News from 7/6/2023