Biden-Harris Administration Announces $11 Billion in Grants and Financing for the Hudson River Tunnel

The following is a statement from the U.S. Department of Transportation.

Monday, July 8, 2024

Hundreds of thousands of commuters travel through the 114-year-old passenger rail tunnel daily, underscoring need to replace and modernize this vital corridor damaged during 2012’s Superstorm Sandy  

NEW YORK – Today, one of the largest infrastructure projects in American history took a huge step forward with billions of dollars in support from the Biden-Harris Administration and the Bipartisan Infrastructure Law. The Hudson River Tunnel project will construct a critical new rail tunnel between New York and New Jersey along a vital economic corridor – just one area of focus for investment across the country as part of the Biden-Harris Administration’s $66 billion investment in passenger rail. It represents the largest project in the history of the U.S. Department of Transportation (USDOT). 

Today in New York, USDOT officials:  

• Signed a Full Funding Grant Agreement through the Federal Transit Administration’s Capital Investment Grants (CIG) program, allowing FTA to invest close to $6.9 billion to help build the tunnel and rehabilitate the existing North River Tunnel, representing the largest grant ever signed by FTA. 
   
• Announced that U.S. Transportation Secretary Buttigieg approved three Railroad Rehabilitation and Improvement Financing (RRIF) loans through DOT’s Build America Bureau totaling $4.1 billion, which will provide financial support at below-market interest rates.

“For decades, Americans watched one of the most heavily-used train tunnels in the hemisphere deteriorate and become a bottleneck that affected travelers from New England to the Mid-Atlantic and beyond,” said U.S. Transportation Secretary Pete Buttigieg. “Today, President Biden is making good on his promise to fix that and build the Hudson Tunnel Project. Using funds from the President's infrastructure law, we are building a new tunnel that improves train travel for millions of Americans and revitalizes a rail corridor that is essential to so much of the nation's economy. And as one of the cathedrals of American infrastructure, this project can demonstrate America's capacity to build big things together in the 21st Century.” 

“Today the Biden-Harris Administration and USDOT are delivering on a promise to the riders of New York, New Jersey, and along the entire Northeast Corridor to invest $11.7 billion in the Gateway Project, and an additional $4.1 billion in federal loans,” said U.S. Deputy Transportation Secretary Polly Trottenberg. “Today represents a major milestone in a years-long effort to build a new Hudson River crossing that has included USDOT, Congress, two states, Amtrak, the Port Authority, local officials, labor partners, and more. Together we are investing in a project that will continue to move Americans forward and contribute to the economic vitality of the nation.” 

The Hudson Tunnel Project encompasses a range of components, including a new double-track tunnel between the Bergen Palisades in New Jersey and Manhattan in New York City, rehabilitating the North River Tunnel damaged by Superstorm Sandy in 2012, and creating a concrete casing at Hudson Yards to allow the new tunnel to connect to New York-Penn Station. These elements will collectively enhance service, improve reliability, modernize design, and mitigate the impact of future natural disasters, ensuring a seamless rail network. 

“It is important to realize that as we improve New Jersey Transit and Amtrak service in and out of Manhattan, we will improve train and transit service for a region that impacts more than 20% of the nation’s economy,” said FTA Acting Administrator Veronica Vanterpool. “FTA is proud to invest in the Hudson Tunnel project so these rails can continue to carry millions of people who keep the American economy humming.” 

“Today’s announcement is a testament to the remarkable progress we can achieve when we work together,” said Bureau Executive Director Morteza Farajian. “The true partnership between both states, the Gateway Development Commission, Port Authority, New Jersey Transit, Amtrak, and various agencies within the federal government secured the last piece of the funding and finance puzzle necessary to deliver this mega project that will serve the region and the nation for generations to come.” 

When the new tunnel and the rehabilitated tunnel open, estimated by 2038, the project will provide four modern rail tunnels for Amtrak and NJ Transit trains. In addition, the project will provide the capability to significantly expand capacity in the future. 

Additional project benefits include building resiliency and safeguarding rail operations against future extreme weather events, managing floods on both sides of the Hudson River, and creating a safer environment for first responders, maintenance workers, and the public, especially in the event of an evacuation. 

In addition to FTA funding and today’s announcement from the Build America Bureau, other sources of USDOT support for the project include:

• $3.8 billion through the Federal Railroad Administration FY 2022-2023 Federal-State Partnership for Intercity Passenger Rail Program for the Northeast Corridor Program. 
   
• $1 billion through Amtrak annual grant funding. 
   
• $25 million through the United States Department of Transportation 2023 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program for the Tonnelle Avenue Bridge Project. 
   
• $292.1 million through the USDOT 2022 MEGA Grant program for the Hudson Yard Concrete Casing Phase 3 project. 

The Mace-Parsons-Arcadis team, serving as MPA Delivery Partners for the Hudson Tunnel Project, issued the following statement on the news:

MPA Delivery Partners, a joint venture of Mace, Parsons Corporation and Arcadis, congratulates the Gateway Development Commission on receiving full federal funding for the Hudson Tunnel rail megaproject: a critical link under the Hudson River that will improve reliability and resiliency of commuter and intercity rail transit on the busiest section of the Northeast Corridor, which serves 800,000 daily passengers from Washington, D.C. to New York, New Jersey, and New England.
 
A milestone project supported by the bipartisan Infrastructure Investment and Jobs Act (IIJA), the Hudson Tunnel project represents the largest investment in a mass transit project in modern history. 
 
MPA was selected to serve as the delivery partner for this once-in-a-generation project in February 2024, and looks forward to working with the Gateway Development Commission on unlocking the full economic and societal potential of the Hudson Tunnel Project and delivering this important project for the people of New York and New Jersey.