The long-awaited project to build a new rail tunnel under the Hudson River took another major step forward toward connecting New Jersey and New York.

As NJBIZ has reported, the Gateway Development Commission (GDC) previously submitted all paperwork to secure a $6.88 billion federal grant toward the $16 billion project. On June 11, federal officials announced a funding agreement to Congress.

The notice keeps the project on track, with plans to sign the full-funding agreement in the coming weeks. It marks a watershed moment for the effort, which has gone through several starts-and-stops as well as different iterations over the past decade and longer.

However, in recent months, the effort has gained considerable steam. Early work has kicked off on both sides of the Hudson River, along with several other notable developments that NJBIZ reported.

“The full funding agreement for the $6.88 billion CIG [Capital Investment Grants] grant is the puzzle piece that completes $12 billion in federal funding for the Hudson Tunnel Project, the largest ever federal commitment to a mass transit project,” the GDC said in a statement. “We are extremely grateful for the support we have received from President [Joe] Biden, Majority Leader [Charles] Schumer (D-N.Y.), Govs. [Kathy] Hochul and Murphy, Secretary [Pete] Buttigieg, and many congressional allies, as well as our other partners in Washington, New York, and New Jersey. Years of dedicated effort by these champions of the project brought us to this moment.”

Full steam ahead

“It’s official: We are moving full steam ahead with the largest and most consequential infrastructure project in the nation,” Gov. Phil Murphy wrote in a post on X. “This is a big win for commuters on both sides of the Hudson.”

“With the additional whopping nearly $7 billion funding I fought to secure, the feds are paying for most of the $16 billion project,” Schumer wrote in a social media post. “It’s all systems go for the Gateway Tunnel.”

BIG NEWS FOR GATEWAY:

With the additional whopping nearly $7 billion funding I fought to secure, the feds are paying for most of the $16 billion project.

It’s all systems go for the Gateway Tunnel!https://t.co/4XX6CZlLYO

— Chuck Schumer (@SenSchumer) June 11, 2024

“Today’s announcement means more good-paying, union jobs are coming to New Jersey,” said U.S. Rep. Mikie Sherrill, D-11th District. “Since day one, I’ve fought tooth-and-nail to secure federal funding to build the Gateway Tunnel, which will bring our infrastructure into the 21st century and improve the quality of life and economic opportunities for millions of families in our region.”

The GDC stressed this is a historic moment for the “most urgent infrastructure project in America.”

“We look forward to signing the FFGA in the coming weeks and reaching the point of no turning back on the Hudson Tunnel Project,” the GDC said.

“From reducing traffic and air pollution, to lowering commute times, to ensuring our public transit is reliable so parents can make it home to coach their kids’ soccer teams, the Gateway Tunnel’s impact on New Jersey families will be immense,” said Sherrill. “I want to thank Transportation Secretary Buttigieg, the Federal Transit Administration, and my colleagues in the New Jersey and New York congressional delegations for their continued commitment to securing the largest grant for mass-transit in history.”