Gateway Development Commission announces execution of $3.8 billion federal-state-partnership grant for Hudson Tunnel Project

The Gateway Development Commission (GDC) announced that it has executed the $3.8 billion Federal-State Partnership (FSP) Grant agreement with the Federal Railroad Administration (FRA), completing the $12 billion federal contribution for the Hudson Tunnel Project (HTP). The action also immediately obligates the initial $1.9 billion from the grant.

Together with the $800 million in New Starts Capital Investment Grant (CIG) Program funding that has already been obligated, GDC now has $2.7 billion in grant funds immediately available for construction of the HTP. In addition to the above amounts, the local share of the Hudson Tunnel Project comprising $4 billion is available to advance construction.

In a joint statement, Alicia Glen, New York GDC Commissioner and Co-Chair, Balpreet Grewal-Virk, 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.”

GDC CEO Kris Kolluri said, “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.”

“Thanks to President Biden’s Bipartisan Infrastructure Law, the Biden-Harris Administration continues to advance projects of national significance along America’s busiest rail corridor, and this month’s finalized funding agreement on the Hudson Tunnel Project is another sign of progress,” said FRA Administrator Amit Bose. “The Biden-Harris Administration is investing billions of dollars in the Northeast Corridor to upgrade aging infrastructure that will allow for higher speeds, shorter travel time, and greater reliability for a growing number of riders. These improvements will be felt in New York, New Jersey, and beyond while creating jobs and growing the economy. FRA appreciates the partnerships and planning that are critical to making progress on the Hudson Tunnel Project and other Gateway Program projects possible, and we look forward to our work together.”

The FSP Grant Program was established by the Infrastructure Investment and Jobs Act (IIJA) 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.

This grant is part of the historic $12 billion in federal funding to the HTP – the largest federal funding commitment to a rail transportation project in modern history. This 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, New Jersey, and work is underway on Phase 2 of the Hudson River Ground Stabilization (HRGS) Project, which is preparing the Hudson riverbed for tunnel boring.

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