NY, NJ governors announce $6.88B investment to fund Hudson Tunnel Project

Governors Kathy Hochul and Phil Murphy came together Monday to sign a deal providing funds to support the Hudson Rail Tunnel project.

The project is officially moving forward after receiving a $6.88B investment from the federal government last month.

The project's $16B total cost will be split 70/30 between the federal government and New York, New Jersey, and the Port Authority of New York and New Jersey.

The Hudson Rail Tunnel project aims to double train capacity by adding inbound and outbound tracks to the existing four-and-a-half-mile tunnel. The two current single-track tunnels, over 110 years old, suffered significant damage from billions of gallons of saltwater during Superstorm Sandy in 2012.

Construction is expected to begin later this year and is projected to be completed by 2035. 

RELATED: Gateway Tunnel Project gears up for Hudson River transformation

"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," said New York Governor Kathy Hochul. 

"Today marks a significant milestone on the path to ensuring the success of our nation’s most vital infrastructure project," said New Jersey Governor Phil Murphy. "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."

Construction is expected to begin on both sides of the Hudson River in November 2023 and is expected to create 95,000 jobs and generate $19.6B in economic activity.