The Gateway Tunnel project has secured 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).
By John Heinis/Hudson County View
“The Hudson Tunnel Project will transform our region for generations to come. With this infusion of available funds, we continue to make progress toward that goal,” U.S. Rep Rob Menendez (D-8) said in a statement.
“By making the largest investment in mass transit in our nation’s history, we are showcasing what we can achieve when federal, state, and local governments partner together — creating jobs, strengthening our infrastructure, and growing our economy.”
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.
“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,” New York GDC Commissioner Alicia Glen, New Jersey GDC Commissioner Balpreet Grewal-Virk, and GDC Amtrak Commissioner and Vice Chair Tony Coscia said in a joint statement.
“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.”
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.
“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,” added GDC CEO Kris Kolluri.
“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.”
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.
What it is now needed is to hold people accountable to make sure there are no insane budget overruns. Audits should be perform on this job site on a monthly basis.