The Gateway Development Commission (GDC) announced that the Commission has executed the $3.8 billion Federal-State Partnership (FSP) Grant agreement with the Federal Railroad Administration (FRA), completing the $12 billion federal contribution for the Hudson Tunnel Project (HTP). The action also immediately obligates the initial $1.9 billion from the grant.

Together with the $800 million in New Starts Capital Investment Grant (CIG) Program funding that has already been obligated, GDC now has $2.7 billion in grant funds immediately available for construction of the HTP. In addition to the above amounts, the local share of the Hudson Tunnel Project comprising $4 billion is available to advance construction.

The FSP Grant Program was established by the Infrastructure Investment and Jobs Act (IIJA) to fund capital projects that reduce the state of good repair backlog, improve performance, or expand or establish new intercity passenger rail service. GDC applied for an FSP 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 – the largest federal funding commitment to a rail transportation project in modern history. This federal commitment will cover 70 percent 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.

GDC has also made significant progress on construction of the HTP since securing full funding for the project in July. Construction crews recently poured the first concrete for the new tunnel at the Tonnelle Avenue Bridge and Utility Relocation Project in North Bergen, New Jersey, and work is underway on Phase 2 of the Hudson River Ground Stabilization (HRGS) Project, which is preparing the Hudson riverbed for tunnel boring.

-via Press Release