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Gateway Development Commission Secures Full Funding for Hudson Tunnel Project | Morristown Minute
Gateway Development Commission Secures Full Funding for Hudson Tunnel Project | Morristown Minute
Gateway Development Commission Secures Full Funding for Hudson Tunnel Project | Morristown Minute

Published on: 07/09/2024

Description

Newark/New York – The Gateway Development Commission (GDC) has achieved a significant milestone by securing $16 billion in funding for the Hudson Tunnel Project (HTP). This includes an unprecedented $12 billion federal commitment, marking the largest federal funding for a rail project in modern history.

On July 8, 2024, GDC finalized a Full Funding Grant Agreement (FFGA) with the Federal Transit Administration (FTA) for $6.88 billion and closed on $4.06 billion in Railroad Rehabilitation and Improvement Financing (RRIF) loans from the Build America Bureau. These funds will cover the local share of the project.

After decades of delays, the Gateway Hudson Tunnel Project is finally moving forward. This Full Funding Grant Agreement will provide the critical resources needed to deliver an essential piece of infrastructure that will bring millions of visitors to New York every year,” said New York Governor Kathy Hochul.I am proud of the work we have done with President Biden, Secretary Buttigieg, Amtrak, and our partners in New Jersey to advance this project and I thank Majority Leader Schumer and the New York Congressional delegation for providing their support."

The HTP aims to mitigate one of the Northeast Corridor's biggest risks by constructing two new tracks and rehabilitating the existing North River Tunnel, ultimately providing four modern tracks between New York and New Jersey. The new tunnel is scheduled to be operational by 2035, with full rehabilitation of the existing tunnel completed by 2038.

The $16 billion project cost is shared between the federal government (70%) and local partners: New York, New Jersey, and the Port Authority of New York and New Jersey (PANYNJ). This funding arrangement significantly reduces the financial burden on local partners compared to the initial 50/50 split plan.

Today marks a significant milestone on the path to ensuring the success of our nation’s most vital infrastructure project,” said New Jersey Governor Phil Murphy.Thanks to the leadership of our partners, both in Congress and across the Hudson, our federal government will be covering over 70 percent of the total cost of the Gateway Tunnel Project. As the main artery of our nation’s economy continues to be pushed to its limits, we are now one step closer to transforming the 100-year-old infrastructure under the Hudson River. New Jersey thanks the Biden-Harris Administration for delivering this critical investment so that our region’s transportation system will be able to support a new century of American leadership.”

The FFGA includes $6.88 billion from the New Starts Capital Investment Grant (CIG) Program, the largest grant in the program's history. Additionally, the federal government will provide $3.8 billion through the Federal-State Partnership for Intercity Passenger Rail (FSP) Program, $292 million from the Bipartisan Infrastructure Law’s Mega grant program, and $25 million via the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Program. Amtrak is also contributing $1 billion.

The low-interest RRIF loans will finance the local share of the project, making this the largest aggregate loan ever provided by the USDOT through the RRIF program.

Construction began in November 2023 and is projected to create 95,000 jobs and generate $19.6 billion in economic activity. Key projects in progress include the Tonnelle Avenue Bridge and Utility Relocation Project in New Jersey and the Hudson Yards Concrete Casing Section 3 (HYCC-3) Project in Manhattan.

Heavy construction and tunnel boring will commence soon, starting with the Hudson River Ground Stabilization (HRGS) Project to stabilize the riverbed on the Manhattan side for tunnel excavation. By the end of 2024, GDC will have awarded over $5 billion in construction contracts and ordered the first Tunnel Boring Machine, marking a significant advancement in the HTP.

News Source : https://morristownminute.town.news/g/morristown-nj/post/266514/gateway-development-commission-secures-full-funding-hudson-tunnel

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