End of False Starts – “For a long time now, the Gateway project has been my passion. It’s a labor of love. And after many false starts and obstacles placed in our way, Gateway is full speed ahead with billions from FTA ready to go and be used for critical work and construction,” said U.S. Sen. Charles Schumer. “Gateway’s future is assured and the most important public works project in America is all systems go.”

“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,” added New York Gov. Kathy Hochul.

New Jersey Gov. Phil Murphy thanked the leadership in Congress and across the Hudson. “Our federal government will be covering over 70% of the total cost of the Gateway Tunnel Project,” he said. “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.”

New Tracks Planned – The HTP will eliminate one of the biggest risks of failure on the Northeast Corridor by building two additional tracks and rehabilitating the existing North River Tunnel, resulting in four modern tracks between New York and New Jersey. The new tunnel will be in service by 2035 and the full rehabilitation of the existing tunnel will be complete by 2038.

The total $16 billion cost of the HTP will be split 70/30 between the federal government and the project’s local partners: New York, New Jersey, and the Port Authority of New York and New Jersey. The arrangement saves the local partners multiple billions of dollars compared to the original plan to split the project costs 50/50.

The FFGA represents a commitment from FTA to provide $6.88 billion for the HTP through the New Starts Capital Investment Grant  Program. This is the largest grant in the history of the CIG Program and the largest single funding source for the HTP.

The federal government has also committed $3.8 billion to the project through the USDOT’s Federal-State Partnership for Intercity Passenger Rail Program, $292 million from the Bipartisan Infrastructure Law’s Mega grant program, and $25 million through the Rebuilding American Infrastructure with Sustainability and Equity  Program. Amtrak is contributing an additional $1 billion.

The low-interest RRIF loans that GDC closed on will fund the local share of the project. These three loans, totaling $4.06 billion, represent the largest aggregate loan the USDOT has provided through the RRIF program.

Jobs and Economic Impacts – Construction of the HTP started on both sides of the Hudson River in November 2023, and it is expected to create 95,000 jobs and generate $19.6 billion in economic activity.

In New Jersey, the Tonnelle Avenue Bridge and Utility Relocation Project is building a new roadway bridge to allow for a connection to the new tunnel portal and an access point for Tunnel Boring Machines. In Manhattan, work is underway on the Hudson Yards Concrete Casing Section 3 Project that will preserve a rail right-of-way to link the new Hudson Tunnel to New York Penn Station.

GDC will now move forward with heavy construction and tunnel boring activity. Heavy construction will begin in the coming weeks with the Hudson River Ground Stabilization  project, which will stabilize the riverbed on the Manhattan side of the Hudson River to enable the Tunnel Boring Machines to excavate the new tunnel.

By the end of 2024, GDC will have awarded contracts for more than $5 billion in construction activity, including contracts to build sections of the tunnel passing through the Palisades in New Jersey and going through the Manhattan bulkhead under Hudson River Park, and will have ordered the first Tunnel Boring Machine.