In addition to the TIFIA loan, financing for the first phase of the project will include Port Authority capital funding. Future phases will also use Port Authority capital for a significant portion of the cost, funding from air/development rights for potential new commercial towers above the new bus terminal and New York City’s contribution of PILOTs generated by the Port Authority’s development efforts.

The $10-billion world-class facility will be completed in phases. When complete, the project will include a new 2 million square-foot main terminal, a separate storage and staging building and new ramps leading directly into and out of the Lincoln Tunnel. The project’s first phase —the temporary terminal, new ramps and Dyer Avenue deck-overs—is expected to be fully completed in 2029, and the new main terminal is expected to be completed in 2032.

The project plan — including the permanent closure of a portion of 41st Street between Eighth and Ninth avenues, a central main entrance, more street-facing retail, a soaring multi-story indoor atrium and new public open space—will enhance both the commuter experience at the world’s busiest bus terminal and the community surrounding the facility. The project is expected to create approximately 6,000 good-paying union construction jobs.

Port Authority Executive Director Rick Cotton said the approval of a federal TIFIA loan for this phase of the bus terminal replacement project further demonstrates the unprecedented public and governmental support at every level for the plan to replace a reviled and obsolete piece of infrastructure with a new, state-of-the-art facility that sits in the heart of Manhattan. “We are grateful to our federal partners at USDOT for working collaboratively with us throughout the process of securing this critical loan, and we are grateful for the support of our New York and New Jersey congressional delegations,” he said.