Key New York Tunnel Project Secures $3.8 Billion in New US Support – Senators

By David Shepardson

WASHINGTON – The Biden administration has announced a $3.8 billion funding award to support the construction of a new railway tunnel that has faced significant delays between New York City and New Jersey, as confirmed by state officials on Friday.

In total, the federal government is set to contribute over $11 billion to the $17.2 billion Hudson Tunnel Project. This initiative aims to repair the existing tunnel and build a new one for passenger rail services, including those operated by Amtrak and regional commuter lines serving the route between New Jersey and Manhattan, as noted by Senate Majority Leader Chuck Schumer.

The current tunnel, which suffered severe damage during Superstorm Sandy in 2012, is critical for commuters in the largest metropolitan area in the U.S., responsible for 10% of the nation’s economic output. Any disruption in service from the existing tunnel would have a profound impact on commuting within the region.

Earlier this year, in July, the White House had already allocated $6.88 billion in funding from the Federal Transit Administration for this important project.

Key officials, including Schumer, Transportation Secretary Pete Buttigieg, and New York Governor Kathy Hochul, marked the commencement of construction for the Hudson Tunnel Project with a celebratory event. Buttigieg highlighted that the project would alleviate travel delays, support 72,000 jobs, and generate an estimated $19 billion in economic activity, calling it "the largest project of its kind in modern American history."

The initiative has been a topic of debate in Washington for over a decade, primarily due to outcomes from Superstorm Sandy, which caused significant flooding in the city affecting the rail lines. The existing 112-year-old tunnel facilitates about 200,000 passenger trips daily on New Jersey Transit and Amtrak services along the Northeast Corridor.

In 2010, the former Governor of New Jersey, Chris Christie, withdrew state funding for the tunnel. Since then, discussions between the administration of former President Donald Trump and Congressional Democrats about federal funding assistance for the tunnel’s replacement have been contentious.

According to Schumer, New Jersey and New York are expected to cover 30% of the project costs, while Amtrak will contribute $1 billion. This project is part of the broader Gateway Program, aimed at enhancing and modernizing the aging infrastructure of the Northeast Corridor rail line between Newark, New Jersey, and New York City.