Another major benchmark was announced Friday for the long-awaited Hudson Tunnel Project, as officials gathered in Hudson Yards to celebrate the start of construction on the New York side of the river.

The event featured a number of leaders and lawmakers from all levels of government as well as officials from Amtrak, the Gateway Development Commission (GDC) and other project stakeholders. While New Jersey had representatives at the event, the dais featured more of a New York-centric flavor because of the Nov. 3 Fort Monmouth-Netflix announcement (and expect more to come on that from NJBIZ), which was happening around the same time.

The work detailed on Friday pertains to the Hudson Yards Concrete Casing – an essential rail right-of-way preservation project that clears the way for the project’s full construction.

The first two phases, which run under the block bordered by 10th and 11th Avenues and 30th and 33rd Streets, are complete. Section 3 will extend the casing – where it will connect with the new Hudson River Tunnel – providing access for trains into New York Penn Station. Officials estimate this portion of the project will be complete in the summer 2026.

Funding for this phase of the project comes via a $292 million Mega Grant from Bipartisan Infrastructure Law, which President Joe Biden announced in January.

On Friday, there was another positive development on the funding front as well, as Senate Majority Leader Chuck Schumer, D-N.Y., announced another $3.8 billion in new federal funds.

“As the tunnel casing construction commences, the federal money is allocated and all systems go! The federal share of cost is now at nearly 70%, saving NY taxpayers billions,” Schumer wrote in a post on social media platform X.

Speaking at the event, Schumer noted this project has been a long-time passion of his.

“It’s a labor of love. And after many false starts and obstacles placed in our way, Gateway is full speed ahead with billions in federal dollars I secured ready to go towards this critical work and construction,” said Schumer. “Gateway’s future is assured and the most important public works project in America is all systems go.”

U.S. Secretary of Transportation Pete Buttigieg said that the Gateway program is critically important not just to the regional economic security – but the entire country.

“That’s why, back in January, we were proud to award $292 million from a brand-new program in President Biden’s infrastructure law to help support this effort,” said Buttigieg. “Today, we celebrate a major step toward completing the new Hudson River Tunnel, as we begin work on the third and final part of the concrete casing that will eventually connect Gateway Hudson Tunnel to Penn Station.”

A big deal

“As we approach the two-year anniversary of the landmark Bipartisan Infrastructure Law, New Jersey thanks the Biden administration and our congressional delegation for their ongoing support of Gateway,” said Gov. Phil Murphy, who was unable to attend because of the aforementioned Netflix event, in a press release. “On the heels of Tonnelle Avenue’s Notice to Proceed, today we have achieved yet another pivotal milestone toward the nation’s most critical infrastructure project. The Hudson Yards Concrete Casing will quite literally pave the way toward the construction of the long-awaited Hudson Tunnel, an integral element of the Gateway Program that will increase connectivity within one of the most heavily trafficked transportation corridors in the country.”

Following the event at Fort Monmouth, Murphy was asked about the Gateway construction milestone and the additional funding during a gaggle with reporters — he described it as a big deal.

“I could not be in two places at once, by the way. I wanted to be there, but we had this booked,” said Murphy, noting that New Jersey Department of Transportation Commissioner and Chief of Staff Diane Gutierrez-Scaccetti was in New York representing the administration.

The governor reiterated his thanks to the Biden administration as well as the congressional delegation for their efforts and support on this project, especially with the new round of funding.

“This is another good sign of the Biden administration understanding that infrastructure is the backbone of our country – that the Gateway Project is the biggest and most important infrastructure project in the country,” said Murphy. “So, it is a huge, huge deal. I cannot give you a dollar amount, but this meaningfully lessens the burden on New Jersey. It is a huge deal.”

“After decades of delays, this project is finally moving forward,” said New York Gov. Kathy Hochul. “The Hudson Tunnel is a nationally important piece of infrastructure and will bring millions of visitors to New York every year.”

Amtrak board Chair and GDC Vice Chair Tony Coscia said that this construction start signifies something different than previous milestones.

“That our vision for new, state-of-the-art infrastructure is no longer just a vision; it’s becoming a reality,” said Coscia.

“Today, the most urgent infrastructure project in the country is taking a major step forward,” said Balpreet Grewal-Virk, GDC New Jersey commissioner and co-chair. “Every commuter and traveler deserves a 21st century transportation experience, and we are committed to making that happen as swiftly as possible.”

GDC Chief Executive Officer Kris Kolluri noted that the benefits that will result from the tunnel start now.

“Today is not just about commemorating the tunnel’s future promise,” said Kolluri. “It’s about the 72,00 new jobs created in the process, the $19 billion in economic activity, and the American suppliers and manufacturers who just gained a very reliable customer.”

“As 2023 began, GDC promised that work would start on both sides of the Hudson River before the end of the year,” said Alicia Glen, GDC New York commissioner and co-chair. “Working hand-in-hand with our federal and state partners has allowed us to deliver on the promise.”