At the end of August, the Gateway Program partners submitted an
updated financial plan for the Hudson Tunnel Project to the Federal Transit Administration (FTA) that should improve the project's rating to a Medium or better. The new financial plan recalculates and strengthens financial commitments by the project partners based on an updated cost estimate accounting for the four-year delay during the previous Administration.
According to the updated plan, major construction on the new tunnel is estimated to begin in August 2023 and the Project’s construction cost is estimated at $12.3 billion, including $10.1 billion for the new tunnel and $2.2 billion for full rehabilitation of the existing tunnel.
The project’s construction cost estimate is down from $12.7 billion in 2017, despite a four year delay by the prior Administration. Overall, the project partners have taken more than $2 billion out of the cost estimate, including $1.4 billion based on advanced design work in the 2019 filing and more than $900 million in property acquisition estimates since Amtrak was able to acquire a major Manhattan property over the summer.
“New York’s economy will depend on how quickly we get this project completed, and I thank Senate Majority Leader Chuck Schumer and the members of New York’s Congressional delegation for their critical, stalwart support of Gateway,” said
New York Governor Kathy Hochul. “I am pleased that we have cleared another important hurdle and look forward to working with our partners to get this done and to show the world that we not only dream big, but act big.”
“The Hudson Tunnel Project is of the utmost importance to the economic well-being of New Jersey, our region, and our country,” said
New Jersey Governor Phil Murphy. “The updated financial plan that is being submitted today exhibits the commitment of our state and that of our partners to the commencement and completion of the single largest critical infrastructure project in the United States. We look forward to working with the Biden Administration, Amtrak, New York, and the Port Authority to begin construction and to provide reliable rail service while creating tens of thousands of jobs and billions in economic benefits to the New Jersey – New York area.”
