Feds would pay for half of new Hudson tunnel under Christie-Cuomo proposal

Written by Mischa Wanek-Libman, editor
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Governors Cuomo (left) and Christie, shown here at a 9/11 memorial, have proposed a financing plan for a new trans Hudson tunnel.
Mykwain Gainey/Office of Governor Chris Christie.

New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo sent a letter to President Barack Obama outlining what they call "a viable funding framework to break the logjam over funding for a new trans-Hudson commuter rail tunnel."

 

The governors point to the acknowledgement from state and federal officials that the tunnel needs to be replaced and they ask for a federal grant commitment to cover 50 percent of the estimated $20 billion cost of a new tunnel. New York, New Jersey and the Port Authority of New York and New Jersey would finance the remaining 50 percent.

The letter reads, “We are writing jointly in an attempt to move the stalled project forward by putting a funding proposal on the table that we believe is realistic, appropriate and fair: split the responsibility for the cost. If the federal government will provide grants to pay for half of the cost of the project, the Port Authority, New York and New Jersey will take responsibility for developing a funding plan for the other half, convening all relevant agencies and utilizing the proposed federal low-interest loan, local funding sources and other funding strategies necessary to complement the federal grant commitment. This funding framework is comparable to previous structures proposed for a new tunnel.”

The governors say the proposal represents a workable funding formula that builds on the collaborative efforts and input of state and federal elected officials from New Jersey and New York:

“However, the key step to building a new tunnel is a realistic financial plan and commitment by the federal government. We have both been in touch with our respective Congressional delegations. In New York, Senator Schumer has stated that he is committed to making the project a reality and has identified a number of federal sources of funding. In New Jersey, Senator Booker and Senator Menendez convened a meeting on the project, and are committed to finding federal funding. The congressional delegations of New York and New Jersey are united in a manner we have rarely seen before.”

In addition to presenting this realistic plan, the governors also requested that federal environmental and planning approvals be expedited in order to move forward as quickly as possible and both governors made a commitment to do the same with similar state-level reviews.

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