New York Construction Report staff writer
The Gateway Development Commission (GDC) has signed a $6.88 billion full funding grant agreement (FFGA) with the Federal Transit Administration (FTA) for the Hudson Tunnel Project (HTP) and closed on Railroad Rehabilitation and Improvement Financing (RRIF) loans from the Build America Bureau totaling $4.06 billion to fund the local share of the project.
“After decades of delays, the Gateway Hudson Tunnel Project is finally moving forward. This full funding grant agreement will provide the critical resources needed to deliver an essential piece of infrastructure that will bring millions of visitors to New York every year,” New York Gov. Kathy Hochul said in a statement. “I am proud of the work we have done with President Biden, Secretary Buttigieg, Amtrak, and our partners in New Jersey to advance this project and I thank Majority Leader Schumer and the New York Congressional delegation for providing their support.”
The GDC can now begin heavy construction and tunnel boring activity. Heavy construction will begin in the coming weeks with the Hudson River Ground Stabilization (HRGS) Project, which will stabilize the riverbed on the Manhattan side of the Hudson River to enable the Tunnel Boring Machines to excavate the new tunnel.
By the end of 2024, GDC will award contracts for more than $5 billion in construction activity, including contracts to build sections of the tunnel passing through the Palisades in New Jersey and going through the Manhattan bulkhead under Hudson River Park, and will have ordered the first Tunnel Boring Machine.
The project will eliminate one of the biggest risks of failure on the Northeast Corridor by building two additional tracks and rehabilitating the existing North River Tunnel, resulting in four modern tracks between New York and New Jersey. The new tunnel will be in service by 2035 and the full rehabilitation of the existing tunnel will be complete by 2038.
The total $16 billion cost of the HTP will be split 70/30 between the federal government and the project’s local partners: New York, New Jersey, and the Port Authority of New York and New Jersey (PANYNJ). This arrangement saves the local partners multiple billions of dollars compared to the original plan to split the project costs 50/50.
Construction of the HTP started on both sides of the Hudson River in November 2023 and is expected to create 95,000 jobs and generate $19.6 billion in economic activity.
In New Jersey, the Tonnelle Avenue Bridge and Utility Relocation Project is building a new roadway bridge to allow for a connection to the new tunnel portal and an access point for Tunnel Boring Machines. In Manhattan, work is underway on the Hudson Yards Concrete Casing Section 3 (HYCC-3) Project that will preserve a rail right-of-way to link the new Hudson Tunnel to New York Penn Station.
“Today marks a significant milestone on the path to ensuring the success of our nation’s most vital infrastructure project,” said New Jersey Governor Phil Murphy. “Thanks to the leadership of our partners, both in Congress and across the Hudson, our federal government will be covering over 70 percent of the total cost of the Gateway Tunnel Project. As the main artery of our nation’s economy continues to be pushed to its limits, we are now one step closer to transforming the 100-year-old infrastructure under the Hudson River.”
