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Govs. Phil Murphy and Kathy Hochul signed the Phase One Memorandum of Understanding required by the Gateway Development Commission Act July 5, advancing the Gateway Program to its next phase.

The MOU, which was also authorized by Port Authority of New York and New Jersey Executive Director Rick Cotton, outlines sources, uses and timing of funding on behalf of New Jersey and New York for the Portal North Bridge and Hudson Tunnel Projects.

The next phase will detail the parties’ responsibilities with respect to the Hudson Tunnel Project and move forward in the federal project review.

“Today marks a pivotal milestone toward the completion of the most significant transportation project not just in New Jersey, but in the entire United States,” said Murphy. “The Gateway Project reflects the importance of New Jersey’s regional partnerships and its alignment with the Biden administration’s infrastructure and transportation priorities. As we proceed with construction of a new tunnel under the Hudson River, we advance one step closer toward a New Jersey that is better connected and better positioned to reap the full economic benefits of our status as a regional crossroads.”

“The Gateway Hudson Tunnel Project is vital to the Northeast Corridor, and today’s announcement is a critical step forward in turning this vision into reality,” said Hochul. “By signing the Phase One Memorandum of Understanding, we are establishing the framework to get this project over the finish line and are making good on our promise to modernize the state’s transportation infrastructure and create a mass transit system worthy of New Yorkers.”

Phase One of the Gateway Program is funded by a combination of federal and local sources. The Port Authority’s commitment for Phase One is $2.7 billion on behalf of the two states. For Portal North Bridge, federal funding sources total approximately 60% of the total cost, leaving a $772.4 million commitment to be split by New Jersey and New York at $386.2 million per state.

For the rest of the Hudson Tunnel Project, the two states will split the local share 50-50.

New Jersey and New York say they intend to work with partners and federal entities to pursue more federal dollars for the Gateway Program through the Infrastructure Investment and Jobs Act.

“We appreciate the efforts of Govs. Murphy and Hochul in moving this critical infrastructure project closer to the finish line,” said Port Authority Chairman Kevin O’Toole. “It is a project of enormous consequence for the many millions of riders who will benefit from it, and it will be a significant driver of economic growth for the entire New Jersey-New York region.”

“The signing of this MOU marks an important step forward in making the nation’s most vital and impactful rail project a reality,” said Cotton. “We are delighted to see real progress being made toward a better, more reliable travel experience for rail customers throughout our region.”

“I thank Gov. Hochul, as well as our Gateway Program partners, our respective federal and state delegations, and the U.S. Department of Transportation for their support in achieving this next great step,” said Murphy.