For Hudson Tunnel Project, $2.7B in Federal Grants Now Available for Construction
Together with the $800 million in New Starts Capital Investment Grant Program funding that has already been obligated from the Federal Transit Administration, GDC said it now has $2.7 billion in grant funds immediately available for construction of the Hudson Tunnel Project. In addition to the above amounts, the local share of the project comprising $4.06 billion is available to advance construction.
The FRA’s Federal-State Partnership Grant Program was established by the Infrastructure Investment and Jobs Act to fund capital projects that reduce the state of good repair backlog, improve performance, or expand or establish new intercity passenger rail service. GDC said it applied for the FRA grant in March 2023 and all $3.8 billion requested was committed in November 2023.
“This grant is part of the historic $12 billion in federal funding to the HTP [Hudson Tunnel Project]—the largest federal funding commitment to a rail transportation project in modern history,” GDC reported. “This federal commitment will cover 70% of the HTP’s cost, saving New York and New Jersey billions compared to the original plan to split costs 50-50 between the federal and local partners.”
The $16 billion Hudson Tunnel Project is one of several Gateway Program projects to upgrade and increase capacity on the New Jersey-to-New York portion of the Northeast Corridor (NEC), the most heavily used passenger rail line in the U.S., hosting more than 2,200 train movements and 800,000 passenger trips daily.
According to GDC, significant progress has been made on Hudson Tunnel Project construction since the Full Funding Grant Agreement for the project was secured in July. Construction crews, it said, recently poured the first concrete for the new tunnel at the Tonnelle Avenue Bridge and Utility Relocation Project in North Bergen, N.J. Also, work is under way on Phase 2 of the Hudson River Ground Stabilization Project, which is preparing the Hudson riverbed for tunnel boring. Phase 1 began in May 2024 and is expected to conclude this fall. Phase Two will be completed in 2027.
Additionally, in line with GDC’s “commitment to transparency and public engagement,” it said it installed an EarthCam last month at the Hudson Yards Concrete Casing – Section 3 (HYCC-3) site on Manhattan’s west side (see image above). Every day, a new panoramic image of that site is available on the GDC website. A separate EarthCam has been capturing daily photos of the Tonnelle Avenue Project construction site since April (see image below).
In a joint statement, New York GDC Commissioner and Co-Chair Alicia Glen; New Jersey GDC Commissioner and Co-Chair Balpreet Grewal-Virk; and GDC Amtrak Commissioner and Vice Chair Tony Coscia said: “The HTP is already starting to bring huge economic benefits to the Northeast and the nation as a whole, starting with the jobs and economic activity resulting from GDC’s direct spending during construction. While we have had the full funding for the HTP committed for months, today we received one of the first major infusions of funds that enables us to turn these commitments into reality. With nearly $3 billion in the bank, the full economic impact of this massive project is beginning to be felt.”
GDC CEO Kris Kolluri said, “The entire $16 billion funding commitment we need to complete the HTP has been secure since GDC signed our Full Funding Grant Agreement this summer. With this dramatic infusion of immediately available cash, GDC is well-prepared to execute the next phase of major construction, and continue moving forward with confidence as we ramp up and prepare to begin tunnel boring activity next year.”
“Thanks to President Biden’s Bipartisan Infrastructure Law, the Biden-Harris Administration continues to advance projects of national significance along America’s busiest rail corridor, and this month’s finalized funding agreement on the Hudson Tunnel Project is another sign of progress,” FRA Administrator Amit Bose said. “The Biden-Harris Administration is investing billions of dollars in the Northeast Corridor to upgrade aging infrastructure that will allow for higher speeds, shorter travel time, and greater reliability for a growing number of riders. These improvements will be felt in New York, New Jersey, and beyond while creating jobs and growing the economy. FRA appreciates the partnerships and planning that are critical to making progress on the Hudson Tunnel Project and other Gateway Program projects possible, and we look forward to our work together.”
“This essential construction project is projected to create 95,000 jobs and generate $19.6 billion in economic activity, offering numerous opportunities for local union subcontractors to be part of securing the region’s future,” said Felice Farber, Executive Director of Subcontractors Trade Association.
In a related development, GDC on Aug. 2 awarded an initial tunnel boring contract and issued a Notice to Proceed on the first heavy construction phase of the Hudson Tunnel Project.
