The $12 billion Hudson Tunnel Project has received a major boost with the Federal Railroad Administration and the Gateway Development Commission executing a $3.8 billion Federal-State Partnership (FSP) Grant agreement for the project, which includes the immediate obligation of $1.9 billion. This significant funding, combined with the previously released $800 million from the New Starts Capital Investment Grant Program, gives GDC $2.7 billion in grant funds available for the construction of the Hudson Tunnel Project.
Mass Transit further reported:
In a joint statement, Alicia Glen, New York GDC commissioner and co-chair, Balpreet GrewalVirk, 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.”
“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,” said GDC CEO Kris Kolluri.
The FSP Grant Program was established by the Infrastructure Investment and Jobs Act to fund capital projects that reduce the state of good repair backlog, improve performance or expand or establish new intercity passenger rail service. GDC applied for an FSP Grant in March 2023 and all $3.8 billion requested was committed in November 2023.
The 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, N.J., and work is underway on Phase 2 of the Hudson River Ground Stabilization Project, which is preparing the Hudson riverbed for tunnel boring.