NEWARK, N.J. and NEW YORK, N.Y. – The Gateway Development Commission (GDC) announced last week that the Hudson Tunnel Project has entered the Engineering Phase of the Federal Transit Administration’s (FTA) Capital Investment Grants (CIG) Program and that the FTA had updated the project to receive an up to a $6.88 Billion CIG Program grant.
The announcement clears the way for the Hudson Tunnel Project to receive the vast majority of the Federal funding needed for full construction. GDC said it expected the remainder of Federal funding to become available to the project through the approximately $4 billion in Federal-State Partnership for Intercity Passenger Rail Grant Program, Rebuilding American Infrastructure with Sustainability and Equity (RAISE), and Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants that have already been applied for.
Taken together, the CIG funding, along with other Federal components and Amtrak’s contribution, mean the entire project is poised to have the Federal funding it needs to undertake early work construction this year, and major construction in 2024. In addition, the States of New York and New Jersey, and the Port Authority of New York and New Jersey have committed to fully funding the local share of the project.
The next phase of the CIG Program process is negotiating and reaching a Full Funding Grant Agreement (FFGA) between the FTA and GDC, as the Project’s Sponsor, which is expected in 2024.
GDC applied to enter the critical Engineering phase in October 2022 and worked in partnership with the FTA on a risk assessment and an updated financial plan for the project.
“The Gateway Program is an essential economic engine for New York and the nation, and the Hudson Tunnel Project moving into the Engineering Phase of the FTA’s Capital Investment Grants program is a great achievement,” said New York Governor Kathy Hochul. “I am proud of the work we have done with President Biden, Secretary Buttigieg, Senior Advisor Landrieu, and our partners in New Jersey to advance this project, and I thank Majority Leader Schumer and the New York Congressional delegation for providing critical support. I will continue working with our partners to ensure this national priority receives the Federal funds it needs to keep moving forward.”
“The entrance of the Hudson Tunnel Project into the Engineering Phase marks the most significant milestone to date for Gateway, which has advanced further than any predecessor project,” said New Jersey Governor Phil Murphy. “Just as importantly, this pivotal benchmark is a testament to the synergies we have forged with our regional neighbors and Federal partners. Indeed, early construction work will begin this year thanks in no small part to robust Federal funding and the commitment of the Biden Administration to modern, world-class infrastructure. We look forward to working with our Federal partners to secure the remaining funding necessary to complete the most urgent infrastructure project in the country.”