The Gateway Development Commission (GDC) has secured full funding for the Hudson Tunnel Project (HTP), signing a Full Funding Grant Agreement (FFGA) with the Federal Transit Administration (FTA) for $6.88 billion and closing on Railroad Rehabilitation and Improvement Financing (RRIF) loans totaling $4.06 billion from the Build America Bureau. This milestone ensures the entire $16 billion needed to complete the project is in place, marking the largest federal funding commitment to a rail transportation project in modern history.
Senator Charles Schumer remarked, “For a long time now, the Gateway project has been my passion. It's a labor of love. And after many false starts and obstacles placed in our way, Gateway is full speed ahead with billions from FTA ready to go and be used for critical work and construction.”
New York Governor Kathy Hochul highlighted the significance of overcoming delays: “After decades of delays, the Gateway Hudson Tunnel Project is finally moving forward. This Full Funding Grant Agreement will provide the critical resources needed to deliver an essential piece of infrastructure that will bring millions of visitors to New York every year.”
New Jersey Governor Phil Murphy emphasized federal support: “Thanks to the leadership of our partners, both in Congress and across the Hudson, our federal government will be covering over 70 percent of the total cost of the Gateway Tunnel Project.”
Senator Cory Booker noted, “I am proud to have helped secure the largest federal infrastructure grant in U.S. history to finally expand rail capacity across the Hudson River and bring our rail system into the 21st century.”
Congressman Jerrold Nadler celebrated progress: “Today's announcement marks an extraordinary milestone for transit riders across the Northeast Corridor and for future economic development.”
Congressman Rob Menendez expressed continued dedication: “This is not just the largest federal investment ever in a mass transit project but a reflection of our unwavering dedication to investing in our critical infrastructure.”
Congressman Frank Pallone praised regional benefits: “With this $12 billion federal investment, we will finally replace this century-old tunnel, significantly enhancing connectivity between New York and New Jersey.”
USDOT Deputy Secretary Trottenberg stated, “Today is a momentous occasion in a years-long collaboration to build a new Hudson River Crossing."
FTA Acting Administrator Veronica Vanterpool added perspective on economic impact: "As we improve New Jersey Transit and Amtrak service in and out of Manhattan, we will improve train and transit service for a region that impacts more than 20 percent of the nation’s economy."
Alicia Glen from GDC underscored job creation: "Construction alone will create tens of thousands of jobs."
Balpreet Grewal-Virk assured commuters about reliability improvements: "Finalizing these agreements enables us to confidently say there is light at the end of the tunnel for commuters struggling with unpredictable service."
Amtrak Board Chair Tony Coscia highlighted collective efforts: "We celebrate this milestone today because of many leaders and partners coming together."
Port Authority Executive Director Rick Cotton affirmed regional importance: "The Port Authority is pleased to have provided an important element of local funding share resulting in full funding achieved today."
Port Authority Chairman Kevin O’Toole commented on economic growth potential: "Gateway is a project that has enormous consequences for millions who will benefit from it."
NJ TRANSIT President & CEO Kevin S. Corbett acknowledged persistent efforts: "After years of planning and persistence, uncertainty behind us now ensures no missed deadlines during complex FFGA process."
Kris Kolluri from GDC reflected on collaborative success: "Securing funding needed today shows dedication enabling us through construction process."
The HTP aims to eliminate major risks by adding two tracks and rehabilitating existing ones between New York and New Jersey by 2038. The total cost split involves 70% federal funds saving local partners billions compared to initial plans.
Federal contributions include $6.88 billion through FTA's CIG Program—the largest grant ever—alongside commitments from other programs amounting to substantial financial backing.
Construction began November 2023 creating significant job opportunities while projects like Tonnelle Avenue Bridge Utility Relocation advance connections ensuring comprehensive progress towards transformative infrastructure goals.
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