JERSEY CITY, NJ – The Biden administration has taken a significant step forward in advancing the long-awaited Hudson Tunnel Project, which involves building a new railway tunnel between New York City and New Jersey. The project, with an estimated cost of $17.2 billion, aims to repair an existing tunnel damaged during Superstorm Sandy in 2012 and construct a new tunnel for Amtrak and state commuter lines.
The administration has granted a key $6.88 billion grant for the project, marking the largest federal transportation grant ever awarded to a single project. This decision initiates the engineering phase of the project and allows the Gateway Development Commission (GDC) to proceed with various activities such as utility relocations, real estate acquisitions, demolition, equipment procurement, and further design.
The White House’s announcement is considered a critical step in unlocking the funding from the Federal Transit Administration’s Capital Investment Grants program. The project will also seek additional funding, including $3.8 billion from a Federal Railroad Administration program, to address any potential cost increases.
The Hudson Tunnel Project has been under discussion for over a decade since the existing rail tunnel suffered damage from Superstorm Sandy. The aging tunnel carries a significant volume of daily passenger trips between New Jersey and New York City. Previous debates and disagreements over funding between different administrations and Congress have contributed to delays in the project.
The Gateway Program, of which the Hudson Tunnel Project is a part, aims to revitalize the infrastructure along the Northeast Corridor rail line between Newark, New Jersey, and New York City. The project is expected to receive substantial federal investments and garner support from New Jersey and New York, which will contribute approximately half of the total cost.
Amtrak, which operates along the Northeast Corridor, expressed excitement about the progress made with the acceptance of the tunnel project into the engineering phase. The project is seen as a critical step towards addressing the region’s aging infrastructure and improving transportation for millions of commuters.