US advances $6.88 billion grant for key New York tunnel project
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[July 07, 2023]
By David Shepardson
WASHINGTON (Reuters) -The Biden administration advanced a key $6.88
billion grant to help build a long-delayed new railway tunnel between
New York City and New Jersey, which would be the largest ever federal
transportation grant for a single project.
The $17.2 billion Hudson Tunnel Project will repair an existing tunnel
and build a new one for passenger railroad Amtrak and state commuter
lines between New Jersey and Manhattan.
Any failure of the lines in the current tunnel, which was heavily
damaged during 2012's Superstorm Sandy, would hobble commuting in the
metropolitan area that produces 10% of the country's economic output.
The White House called the decision "a critical step towards unlocking
up to $6.88 billion in funding" from the Federal Transit
Administration's (FTA) Capital Investment Grants program.
The announcement officially begins the engineering phase of the project
and allows the Gateway Development Commission (GDC) to begin utility
relocations, real estate acquisitions, demolition, procurement of
equipment and materials, and further design.
If it meets all requirements including securing non-federal matching
funds, the White House will consider awarding up to $6.88 billion for
the project.
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Senate Majority Leader Chuck Schumer of New York said plan sponsors are
also applying for an additional $3.8 billion from a Federal Railroad
Administration program "which hasn't yet been awarded, to address any
potential cost increases."
New Jersey Democratic Senators Cory Booker said the announcement "puts
this project on track to receive the substantial federal investments and
will enhance "the lives of millions of commuters."
The project has been debated in Washington for over a decade since a New
York City-area rail tunnel was damaged when Superstorm Sandy flooded
parts of the city. The 112-year-old rail tunnel carries 200,000
passenger trips per day on New Jersey Transit and Amtrak along the
Northeast Corridor.
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![](../images/070723PIX/news_v34.jpg)
U.S. Senate Majority Leader Chuck
Schumer (D-NY) looks on during the weekly Democratic Senate press
conference on Capitol Hill in Washington, U.S., June 7, 2023.
REUTERS/Evelyn Hockstein
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In 2010, then-New Jersey Governor Chris Christie pulled state
funding for the tunnel project. The administration of then-U.S.
President Donald Trump and Democrats in Congress were at odds over
whether the federal government should help fund the tunnel
replacement.
Schumer said the Trump administration "made many efforts to derail
the project, including slashing its funding and critical programs
that would fund its construction."
New Jersey and New York are expected to put up about half the $17.2
billion cost, Schumer said.
The Gateway Program aims to overhaul much of the aging
infrastructure in the Northeast Corridor rail line between Newark,
New Jersey, and New York City.
Last month, Amtrak applied for $8 billion in government grants to
modernize bridges, tunnels and other aging infrastructure along the
busy Washington to Boston corridor.
Amtrak said on Thursday acceptance of the tunnel project into the
engineering phase "has been years in the making, and we are thrilled
to be even closer to the start of major construction on this
critical Gateway Program project."
(Reporting by David Shepardson; Editing by Richard Chang)
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