Feds Pledge $7 Billion For 'Gateway' Train Tunnel Between NJ, NY

NEW JERSEY — Are you sick of the endless headaches that come with commuting between New Jersey and New York? There’s good news on the horizon, officials say: a long-awaited train tunnel is on track to get a massive boost from the federal government.

The Federal Transit Administration announced Thursday that it is allowing the Gateway Tunnel to move forward into its engineering phase, a major milestone that also comes with $6.88 billion in anticipated funding.

It’s the largest federal transportation grant ever awarded for a single project, lawmakers from the two states say.

The project has three major parts, according to the Gateway Development Commission:

• New, Two-Track Hudson River Tunnel - A new, two-track Hudson River rail tunnel will be constructed between the Bergen Palisades in New Jersey to Manhattan, directly serving New York Penn Station. It will serve Amtrak and NJ Transit trains.
• Hudson Yards Concrete Casing, Section 3 - A third and final rail right-of-way preservation section will be built underneath Hudson Yards in New York. This will eventually allow trains to travel between the new Hudson River Tunnel and the existing Penn Station New York.
• North River Tunnel Rehabilitation - The existing tunnel beneath the Hudson River, which has suboptimal service reliability its and antiquated design, and was severely damaged during Superstorm Sandy, will be rehabilitated.

The Gateway Tunnel is part of a larger plan to take some pressure off one of the most notorious railway chokeholds in the nation: the Northeast Corridor.

Work will also include building new Portal North and South Bridges over the Hackensack River in New Jersey, as well as several other smaller upgrades between Newark Penn Station and New York Penn Station. Read More: There’s Good News For One Of NJ's Most Hated Bridges

The overall cost of the so-called Gateway Project has risen to roughly $17.18 billion, significantly higher than earlier estimates of $16 billion. However, the price tag is well worth it, supporters say, including U.S. Transportation Secretary Pete Buttigieg.

“Every day, 200,000 people pass through the North River Tunnel, and a closure affects not just the entire Northeast Corridor, but the entire country,” said Buttigieg, who visited Newark and New York City in 2021 to express his support for the project.

An estimated 400 trains pass through the North River tunnel every weekday. If the tunnel shut down for just one day, it would cost the United States more than $100 million, experts claim. See Related: Hudson River Tunnel Shutdown Would Cost Billions, Study Says

The nonprofit Regional Plan Association (RPA), which has warned of devastating consequences if the existing, century-old tunnel should shut down, said the Gateway Tunnel is the Tri-State Area’s “most critical” large-scale infrastructure priority.

The group pointed out in an April report that paying for the Gateway Project is no small feat. Learn more about how the project is being funded here.

“The pledge of $6.88 billion in funding from the federal government will guarantee construction on the Hudson Tunnel project will begin on both sides of the river in 2023,” the RPA reported Thursday.

Several lawmakers from New Jersey and New York cheered the latest Gateway news this week.

“This is a giant leap forward,” U.S. Sen. Chuck Schumer of New York tweeted.

New Jersey’s two U.S. senators, Robert Menendez and Cory Booker, also had high praise for the federal dollars headed to the Tri-State Area.

“The Hudson River tunnels entering into engineering puts us on a direct path to receiving billions of dollars in federal funding for a project that will facilitate increased capacity along the entire Northeast Corridor — a region that accounts for 20 percent of national GDP — and provide thousands of New Jerseyans who commute to New York every day with better, safer, and more reliable service,” Menendez said.

The most recent wave of funding isn’t the only rush of federal cash that has come Gateway’s way. According to the FTA:

“In addition to the Hudson River Tunnel project, the U.S. Department of Transportation has provided support for the [Gateway Project], including a CIG grant agreement for Portal North Bridge, a Mega grant for the Hudson Yard Concrete Casing, which will provide the opening of the new Hudson River tunnel on the New York side, and most recently a RAISE grant for Tonnelle Avenue, which will provide the opening of the tunnel on the New Jersey side. The Hudson River Tunnel project is also under consideration for Federal Railroad Administration grant funds.”

One of these funding boosts – the federal “mega grants” – was hyped up by Biden when he visited the New York side of the Hudson River in January.

“As a U.S. senator, I commuted for 36 years, every single solitary day the Senate was in session – and I can tell you where all the delays were,” Biden recalled at a news conference.

“This tunnel opened for business in 1910,” the president continued. “And the structure is literally deteriorating. The roof is leaking, the floor is sinking, plus it was badly damaged by Superstorm Sandy. I was the vice president then. I came and walked through this tunnel. You ought to see it.”

• See Related: Joe Biden Says Big Bucks Are Coming For Gateway Tunnel In NJ, NY

The Gateway Project – which was greenlighted during the administration of former President Barack Obama – hit a brick wall during the Trump administration. But it has picked up steam again since Biden took office, and has seen several key milestones since then.

Last summer, the governors of New York and New Jersey signed a written agreement that guarantees a 50-50 split when it comes to funding the Gateway tunnel project. Read More: NY/NJ Governors Sign Agreement To Split Cost Of Gateway Project

At the time, New Jersey Gov. Phil Murphy and New York Gov. Kathy Hochul said they would work to “aggressively” chase more federal funding through Biden's landmark infrastructure package. Read More: Here's What NJ Will Get From $1 Trillion Infrastructure Bill

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