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The Gateway Development Commission (GDC) commissioned a new economic impact analysis of the first five contracts awarded as part of the Hudson Tunnel Project.

Described as the nation’s most critical infrastructure project, HTP will include 9 miles of rail tunnel under the Hudson River, as well as the rehabilitation of the existing 115-year-old tunnel. Beyond its age, the subterranean passage also suffered significant damage during Superstorm Sandy.

Once complete, HTP will increase capacity and reliability on a key portion of the Northeast Corridor. The five project contracts currently under construction are:

• Hudson Yards Concrete Casing – Section 3: 4,800 jobs
• Tonnelle Ave. Bridge & Utility Relocation: 400 jobs
• Hudson River Ground Stabilization: 2,300 jobs
• Palisades Tunnel: 5,500 jobs
• Manhattan Tunnel: 7,200 jobs

“When the Hudson Tunnel Project is complete, it will deliver 21st century transportation reliability for millions of passengers,” said GDC Chief Executive Officer Tom Prendergast. “Today it is delivering good jobs for workers and new business for American companies.”

“The HTP has fully entered the construction delivery phase,” the report stated. “The first package of work on the Tonnelle Avenue Project is expected to conclude before the end of 2025, creating access for the TBMs [tunnel boring machines] to begin excavation and the alignment for the tunnel’s tracks to reach the Palisades.

“The new tunnel’s path under the High Line will be plain to see as the Hudson Yards Concrete Casing passes 50% completion in the coming weeks.”

GDC Senior Communications Associate Molly Beckhardt authored the report with support from GDC staff. The paper evaluates the economic impact of those first five HTP contracts using the input-output IMPLAN model.

Key takeaways regarding active construction contracts include:

• Support 20,200 direct, indirect and induced full-time equivalent workers
• Generating $4.5 billion in economic output and $1.7 billion in labor income
• Nearly 94% of the more than $2.2 billion in total capital spending is expected to be sourced within the U.S.
• Every $10 spent on direct labor supports more than $17 in wages and benefits across the country
• Creating a ripple effect in the local economy, such as area restaurants seeing a lunchtime boom

The findings come on the heels of a 2024 report that anticipated total construction would support 95,000 jobs (FTEs) and generate $19.6 billion in economic activity.

“As ground breaks on each new contract for this once-in-a-generation project, the kitchen table benefits grow by orders of magnitude,” Beckhardt wrote in her conclusion. “These first five contracts will enable major construction over the next 13 years, as GDC sets the stage for tunneling under the Hudson River and building a viaduct, fan plants, railroad bridges, and much more.

“Current and future construction will continue to drum up business for domestic suppliers and manufacturers, generate good-paying jobs with strong benefits, and increase household income for hardworking Americans interconnected by the HTP’s broad-based opportunities.”

Prendergast said, “Every time we launch work on a new construction site for this megaproject, we have a major positive impact on the economy. It’s essential that we keep up the forward momentum and remain vigilant about its scope, schedule, and budget.”

“By the time construction is complete and the new tunnel is serving riders with fast and reliable transportation, the investment in the HTP will have already paid for itself,” Beckhardt wrote to close out the report.

You can view the full report viewed here.