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Thursday marked a major milestone for the long-delayed, anticipated, and once-beleaguered, Hudson Tunnel Project as it entered the Engineering Phase of the Federal Transit Administration’s (FTA) Capital Investment Grants (CIG) Program, clearing the way for the project to receive the vast majority of the federal funding needed for full construction.

The Gateway Development Commission (GDC), the project’s sponsor, announced July 6 that the FTA updated the project to receive an up to $6.88 billion CIG Program grant – the most ever awarded to a mass-transit project.

GDC says that it expects the remainder of the federal funding to become available to the project through the roughly $4 billion in Federal-State Partnership for Intercity Passenger Rail Grant Program, Rebuilding American Infrastructure with Sustainability and Equity (RAISE), and Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants that have already been applied for.

The organization added that, taken together through those different sources and others, the project is poised to have the federal funding it needs to undertake early work construction this year and major construction next year.

Additionally, New Jersey, New York and the Port Authority have committed to fully funding the local share of the project.

For the next phase of the CIG Program process, GDC and FTA will negotiate a Full Funding Grant Agreement (FFGA), which is expected in 2024.

The nearly $7 billion milestone comes on the heels of a number of positive developments over recent days, weeks and months, which NJBIZ has extensively reported on, as the Hudson Tunnel project moves full steam ahead.

“The entrance of the Hudson Tunnel Project into the Engineering Phase marks the most significant milestone to date for Gateway, which has advanced further than any predecessor project,” said Gov. Phil Murphy. “Just as importantly, this pivotal benchmark is a testament to the synergies we have forged with our regional neighbors and federal partners. Indeed, early construction will begin this year thanks in no small part to robust federal funding and the commitment of the Biden Administration to modern, world-class infrastructure. We look forward to working with our federal partners to secure the remaining funding necessary to complete the most urgent infrastructure project in the country.”

“The Gateway Program is an essential economic engine for New York and the nation, and the Hudson Tunnel Project moving into the Engineering Phase of the FTA’s Capital Investment Grants program is a great achievement,” said New York Gov. Kathy Hochul. “I will continue working with our partners to ensure this national priority receives the federal funds it needs to keep moving forward.”

The entrance of the Hudson Tunnel Project into the Engineering Phase marks the most significant milestone to date for Gateway, which has advanced further than any predecessor project.
– Gov. Phil Murphy

“We are very grateful to the Biden Administration, Govs. Hochul and Murphy, Majority Leader [Charles] Schumer, our entire congressional delegation, and the GDC Board for their unwavering commitment to keep the Hudson Tunnel Project moving forward,” said Kris Kolluri, GDC chief executive officer. “Combined with early work beginning in New York and New Jersey, the FTA’s commitment of the vast majority of federal funding for the project is an enormous step in ensuring we move quickly to create a 21st century rail experience and hundreds of thousands of passengers.”

Balpreet Grewal-Virk, New Jersey commissioner and GDC co-chair, said this announcement shows what a true partnership can achieve.

“The FTA is endorsing the work that GDC and our partners have done to assure billions in local funding, advance the project and demonstrate that we will responsibly ensure it gets built,” said Grewal-Virk.

“The Hudson Tunnel Project will allow for increased reliability, redundancy, and, most important, a better passenger experience on the busiest stretch of the Northeast Corridor,” said Anthony Coscia, Amtrak commissioner and GDC vice-chair. “Entry into Engineering is a major milestone accomplishment for the partnership between New York, New Jersey, Amtrak, and the federal government. Now, it’s time to go build.”