NEW YORK – Today, one of the largest infrastructure projects in American history advanced significantly with billions of dollars in support from the Biden-Harris Administration and the Bipartisan Infrastructure Law. The Hudson River Tunnel project will construct a critical new rail tunnel between New York and New Jersey along a vital economic corridor. This initiative is part of the Biden-Harris Administration’s $66 billion investment in passenger rail, marking the largest project in the history of the U.S. Department of Transportation (USDOT).

USDOT officials signed a Full Funding Grant Agreement through the Federal Transit Administration’s Capital Investment Grants (CIG) program, enabling FTA to invest close to $6.9 billion to help build the tunnel and rehabilitate the existing North River Tunnel. This represents the largest grant ever signed by FTA.

Additionally, U.S. Transportation Secretary Pete Buttigieg approved three Railroad Rehabilitation and Improvement Financing (RRIF) loans through DOT’s Build America Bureau totaling $4.1 billion, providing financial support at below-market interest rates.

“For decades, Americans watched one of the most heavily-used train tunnels in the hemisphere deteriorate and become a bottleneck that affected travelers from New England to the Mid-Atlantic and beyond,” said Buttigieg. “Today, President Biden is making good on his promise to fix that and build the Hudson Tunnel Project. Using funds from the President's infrastructure law, we are building a new tunnel that improves train travel for millions of Americans and revitalizes a rail corridor that is essential to so much of the nation's economy. And as one of the cathedrals of American infrastructure, this project can demonstrate America's capacity to build big things together in the 21st Century.”

“Today, the Biden-Harris Administration and USDOT are delivering on a promise to riders in New York, New Jersey, and along the entire Northeast Corridor to invest $11.7 billion in the Gateway Project, along with an additional $4.1 billion in federal loans,” said U.S. Deputy Transportation Secretary Polly Trottenberg. “Today represents a major milestone in a years-long effort to build a new Hudson River crossing that has included USDOT, Congress, two states, Amtrak, Port Authority, local officials, labor partners, and more. Together we are investing in a project that will continue to move Americans forward and contribute to economic vitality.”

The Hudson Tunnel Project includes several components: constructing a new double-track tunnel between Bergen Palisades in New Jersey and Manhattan; rehabilitating the North River Tunnel damaged by Superstorm Sandy; and creating a concrete casing at Hudson Yards for connection to New York-Penn Station. These efforts aim to enhance service reliability, modernize design standards, mitigate future natural disasters' impacts, and ensure seamless rail network operations.

“It is important to realize that as we improve New Jersey Transit and Amtrak service into Manhattan,” said FTA Acting Administrator Veronica Vanterpool. “We will improve train and transit service for a region impacting more than 20% of our nation’s economy.” She added that "FTA is proud to invest in this project so these rails can continue carrying millions who keep our economy humming."

Bureau Executive Director Morteza Farajian stated: “Today’s announcement is testament to remarkable progress achieved through true partnership between both states; Gateway Development Commission; Port Authority; New Jersey Transit; Amtrak; various federal agencies securing final funding necessary for delivering this mega-project serving regionally & nationally.”

The new tunnel alongside rehabilitated tunnels aims for completion by 2038 providing four modern rail tunnels accommodating Amtrak & NJ Transit trains while allowing future capacity expansion.

Other benefits include enhancing resiliency against extreme weather events managing floods across both sides Hudson River ensuring safer environments during evacuations benefiting first responders maintenance workers public alike.

Additional USDOT support sources include:

- $3.8 billion via Federal Railroad Administration FY 2022-2023 Federal-State Partnership Intercity Passenger Rail Program Northeast Corridor.

- $1 billion from annual Amtrak grants.

- $25 million through USDOT's 2023 RAISE program Tonnelle Avenue Bridge Project.

- $292.1 million via USDOT's 2022 MEGA Grant program Hudson Yard Concrete Casing Phase 3.