Port Authority secures $1.9B federal loan for transformative midtown bus terminal replacement

Loan issued through Build America Bureau funds first phase of modernized transportation hub

The Port Authority of New York and New Jersey has announced a pivotal step forward in its $10 billion Midtown Bus Terminal replacement project, securing up to $1.9 billion through the U.S. Department of Transportation’s Transportation Infrastructure Finance and Innovation Act (TIFIA) loan program.

This funding will support the project’s first phase, which is set to begin construction this year. It aims to transform the aging terminal into a world-class facility.

Key Project Highlights:

  • State-of-the-Art Infrastructure: replacing outdated facilities to enhance commuter experiences and reduce congestion.
  • Sustainability Focus: design includes net-zero emissions, support for all-electric bus fleets, and innovative green technologies.
  • Community Benefits: 3.5 acres of new public green spaces, community-facing retail, and reduced bus traffic on local streets.
  • Economic Impact: expected to create approximately 6,000 union construction jobs and significant economic benefits for the region.
West-facing view of the proposed main terminal’s facade on 39th Street. Credit: Foster + Partners & Epstein
Proposed main terminal’s facade on 40th Street. Credit: Foster + Partners & Epstein

Federal and Local Leadership Speak Out:

“The Midtown Bus Terminal is a fixture in many New Jerseyans’ daily lives, and our residents deserve a best-in-class facility,” said New Jersey Gov. Phil Murphy. “Securing this critical funding brings us a step closer to a new and modernized bus terminal that will serve as the world-class gateway to our region while bolstering our regional economy.”

“This federal loan for this vital, interstate transportation facility will enable the Port Authority to build a 21st-century bus terminal that commuters from New Jersey and communities in New York City deserve and will rely on for decades to come,” said Port Authority Chairman Kevin O’Toole.

“After years of planning and advocacy, the Midtown Bus Terminal replacement project will now become a reality,” said U.S. Sen. Cory Booker of New Jersey. “This project will support the millions of people commuting through the Port Authority Bus Terminal every year — and the hundreds of thousands of New Jerseyans who rely on it every day. With this approval, secured through the Transportation Infrastructure Finance and Innovation Act, the Port Authority can begin transforming the decades-old Port Authority Bus Terminal into the efficient, state-of-the-art transit hub our region deserves.”

“With funding secured from the federal government, we’re one step closer to breaking ground on this transformational project that will enhance the experience for all those who rely on our transit system,” said U.S. Rep. Robert Menendez of New Jersey. “Each day, hundreds of thousands of commuters — many of whom are our residents — travel through the Midtown Bus Terminal. With the support of the Department of Transportation, we’re ensuring that this vital resource will be the benchmark for what the modern era of public transportation should look like. I’m proud to have helped our Port Authority partners secure this funding, and excited for the benefits that this will bring to our region.”

“I am proud to have worked with the Port Authority to claw millions of federal tax dollars back from Washington to invest in the Midtown Bus Terminal replacement project and help the Port of New York and New Jersey,” said U.S. Rep. Josh Gottheimer of New Jersey. “I helped write, negotiate, and pass the Bipartisan Infrastructure Bill — which strengthened and expanded the TIFIA loan program. Now, these vital federal dollars will provide a critical investment to modernize our infrastructure, stimulate our economy, and improve the daily commute for hard-working Jersey families.”

Project Details:

  • Phase One: Includes a temporary terminal, new ramps, and deck-overs for green spaces, targeted for completion in 2029.
  • Main Terminal: A 2-million-square-foot facility with modern amenities, expected to be finished by 2032.
  • Enhanced Transit: Direct connections to the Lincoln Tunnel and facilities for bus storage and staging.