The Gateway Development Commission on Monday announced the final round of federal funding has been deployed for the Hudson Tunnel Project — the $16 billion rail plan that will connect New York City and New Jersey.
The Federal Railroad Administration provided the GDC’s program with $3.8 billion in aid — completing the last portion of a $12 billion federal contribution granted to the Hudson Tunnel project. The action also immediately obligates the initial $1.9 billion from the grant.
Together with the $800 million in New Starts Capital Investment Grant (CIG) Program funding that has already been obligated, GDC now has $2.7 billion in grant funds immediately available for construction of the HTP. In addition to the above amounts, the local share of the Hudson Tunnel Project comprising $4 billion is available to advance construction.
“The entire $16 billion funding commitment we need to complete the HTP has been secure since GDC signed our Full Funding Grant Agreement this summer. With this dramatic infusion of immediately available cash, GDC is well-prepared to execute the next phase of major construction and continue moving forward with confidence as we ramp up and prepare to begin tunnel boring activity next year,” GDC Chief Executive Officer Kris Kolluri said.
In a joint statement, Alicia Glen, New York GDC commissioner and co-chair, Balpreet Grewal-Virk, New Jersey GDC commissioner and co-chair, and Tony Coscia, GDC Amtrak commissioner and vice chair, said, “The HTP is already starting to bring huge economic benefits to the Northeast and the nation as a whole, starting with the jobs and economic activity resulting from GDC’s direct spending during construction. While we have had the full funding for the HTP committed for months, today we received one of the first major infusions of funds that enables us to turn these commitments into reality. With nearly $3 billion in the bank, the full economic impact of this massive project is beginning to be felt.”
This grant is part of the historic $12 billion in federal funding to the HTP – the largest federal funding commitment to a rail transportation project in modern history. This federal commitment will cover 70 percent of the HTP’s cost, saving New York and New Jersey billions compared to the original plan to split costs 50-50 between the federal and local partners.
GDC has also made significant progress on construction of the HTP since securing full funding for the project in July. Construction crews recently poured the first concrete for the new tunnel at the Tonnelle Avenue Bridge and Utility Relocation Project in North Bergen, New Jersey, and work is underway on Phase 2 of the Hudson River Ground Stabilization (HRGS) Project, which is preparing the Hudson riverbed for tunnel boring.
