News & Reviews News Wire Officials sign off on $6.88 billion grant for Gateway Tunnel

Officials sign off on $6.88 billion grant for Gateway Tunnel

By David Lassen | July 9, 2024

Monday ceremony also finalizes $4.1 billion in loans for NEC project

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Large group of people with oversized check for $6.88 billion
Officials pose with the obligatory giant check — in this case for $6.88 billion — at Monday’s ceremony in Manhattan to sign a grant for that amount for the Gateway Tunnel project. Sen. Chuck Schumer via X

NEW YORK — Officials signed off on a $6.88 billion federal grant Monday for the Northeast Corridor’s Gateway Tunnel project — the largest single federal grant ever for a transit infrastructure project, and part of $11 billion in federal money for the $16 billion project to build two new bores under the Hudson River between New Jersey and New York.

The ceremony in Manhattan included signing the grant agreement for the $6.88 million award under the Federal Transit Administration’s Capital Investment Grants program, as well as $4.1 billion for three Railroad Rehabilitation and Improvement Financing loans from the Department of Transportation. In addition to funding the two new single-track tubes, the project includes rehabilitation of the existing North River Tunnel, which handles about 450 trains per day and sustained significant damage during 2012’s Hurricane Sandy.

The FTA grant had been announced a year ago as part of a press release announcing permission for the tunnel project to enter the engineering phase. It was heralded then by two U.S. Senators who have focused on obtaining federal funding — Sens. Chuck Schumer (D-N.Y.) and Cory Booker (D-N.Y.) [see “Federal government commits $6.88 billion …,” Trains News Wire, July 7, 2023].

The project will be built in eight stages, two of which are already in progress: ground stabilization work in Manhattan and bridge and utility relocation in North Bergen, N.J. More project details are available here.

NJ.com reports completion of the tunnels is projected for June 2038 with full project completion by November 2040, according to an FTA risk report.

U.S. Sen. Cory Booker (D-N.J.) said at the ceremony that the funding is for “the most consequential infrastructure project in all America,” NJ.com reports, citing the 20% of gross domestic product generated by the New York-New Jersey region; the 95,000 construction jobs expected to result; and the projected $20 billion in economic activity it will generate.

U.S. Deputy Transportation Secretary Polly Trottenberg said in a press release that the signing “represents a major milestone in a years-long effort to build a new Hudson River crossing that has included U.S. DOT, Congress, two states, Amtrak, the Port Authority [of New York and New Jersey], local officials, labor partners, and more.”

The American Public Transportation Association heralded completion of the grant funding in a statement, with CEO Paul P. Skoutelas saying the project “will enhance passenger rail travel for millions, support economic vitality, and demonstrate the nation’s capacity for large-scale, collaborative achievements. Historic investments under the [Bipartisan Infrastructure Law] are vital for America’s future strength and prosperity. Strong public transit and passenger rail grows the economy by connecting people to jobs, education, healthcare, businesses, and opportunities.”

12 thoughts on “Officials sign off on $6.88 billion grant for Gateway Tunnel

  1. It took 7 years and 5 months to build the original tunnels and the station. It will take 14 years using modern technology. Talk about reverse progress.

    1. I think this includes the renovation of the existing tunnels which cannot begin until the new tunnels are completed and in operation. Also, there were many deaths and injuries in the original construction. Fortunately, we now have procedures and safeguards that make this work, while still perilous, much safer. Safer often takes longer, too.

  2. One of the most critical transportation projects for the US economy, to relieve the pressure on the two existing, crumbling tunnels, and the completion is in ’38? Incredible. Why build a tunnel at all. Just cut a large trench in the Hudson, assemble a paired string of prebuilt modules together, seal them and then pump the water out, cover them over and link the ends to connections from both sides.

  3. Steven Moore for the win! I’m not clear on why every US taxpayer should be sharing the burden for a project which will only benefit NYC residents and visitors and the costs for which will balloon as Mr. Moore predicts. I realize their tax burden is already hellish, but why not let the beneficiaries pay for this?

  4. I predict completion in November of 2052 (12 years late) and costing $36 billion ($20 billion over budget).

  5. 2038 will be the centennial of the Hindenburg tragedy and re-equipment of the the Pennsylvania Railroad’s New York – Chicago ‘Broadway Limited’ as a streamliner for some perspective.

  6. Does this prevent claw back of the funds? Have to be skeptical that will not happen! If the new tunnel bores become operational in 2038 how can both present bores be rehabbed in just 2 years. When each East river bore is going to take 18 months with same design.

    1. Are the going to bore both of the new tunnels at the same time or one at a time? I don’t know what the plan is but if one of the new tunnels is finished and can be put to use then repairs could start on one of the older ones.

  7. preposterous long time line, if it takes that long it can’t be a critical priority. Unbelievable how long it has taken to get to here.

    1. Projects take this long if done parts at a time — because there isn’t enough money in the universe to do it all at the same time. The last project map I saw in TRAINS (several years ago) showed miles of all-new approach railroad as well as the bores themselves.

      I refer you to the Second Avenue Subway. Six decades to go the length of a handful of stations.

    2. It sure wasn’t a “critical priority” for the Obama administration in whose time the funding was first proposed then batted around. Then NY Gov. Andrew Cuomo had no use for it. When it was proposed the funding should be 50% federal and 50% each by NY&NJ, Cuomo shot it down saying “They are not my tunnels” or words to that effect. What for Cuomo were “critical priorities” were replacement of the Tappan Zee/I-78 Bridge and massive upgrades at JFK and LGA. And while the Obama people were appropriating serious $$$ for pie-in-the-sky CAHSR, they funded the TZB and airport projects and told everyone they were leaving Gateway for the next administration. And we all know how that turned out.

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