NYC Rail Tunnel construction delayed as cost jumps $2 billion

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Overview of The Gateway Tunnel Program (Gateway Program Development Corporation)

New York Construction Report staff writer

Construction on the New York City-area Gateway rail tunnel has been delayed until 2024 due to ballooning costs.

According to the Gateway Development Commission, the price tag has climbed $2 billion to $16.1 billion and the expected start of construction has been pushed to mid-2024. The commission will seek more federal aid to cover the rising cost.

The tunnel is anticipated to be in service by 2035.

In June, Mitch Landrieu, President Joe Biden’s infrastructure chief, was quoted by Bloomberg, saying the US Northeast Corridor rail line will receive “a lot of attention” as far as spending, and calling the Gateway plan “a cathedral project.”

Half the original cost was expected to be covered by the federal government, and the rest by New York and New Jersey, with contributions from Amtrak and the Port Authority of New York and New Jersey.

The commission will apply for additional funding under the 2021 Infrastructure Investment and Jobs Act. It expects a full funding grant agreement in early 2024, with construction starting later that year.

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