Hudson Tunnel Project: $6.88B CIG Grant

Written by David C. Lester, Engineering Editor and Editor-in-Chief, Railway Track & Structures
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Hudson Tunnel Preferred Alternative. Gateway Development Commission illustration

The Gateway Development Commission (GDC) announced July 6 that the Hudson Tunnel Project has entered the Engineering Phase of the Federal Transit Administration’s (FTA) Capital Investment Grants (CIG) Program, and that the FTA had updated the project to receive an up to a $6.88 Billion CIG Program grant.

The announcement clears the way for the Hudson Tunnel Project to receive the vast majority of the federal funding needed for full construction. GDC said it expected the remainder of federal funding to become available to the project through the approximately $4 billion in Federal-State Partnership for Intercity Passenger Rail Grant Program, Rebuilding American Infrastructure with Sustainability and Equity (RAISE), and Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants that have already been applied for.
Taken together, the CIG funding, along with other federal components and Amtrak’s contribution, mean the entire project is poised to have the Federal funding it needs to undertake early work construction this year, and major construction in 2024. In addition, the States of New York and New Jersey and the Port Authority of New York and New Jersey have committed to fully funding the local share of the project.
The next phase of the CIG Program process is negotiating and reaching a Full Funding Grant Agreement (FFGA) between the FTA and GDC, as the Project’s Sponsor, which is expected in 2024.
GDC applied to enter the critical Engineering phase in October 2022 and worked in partnership with the FTA on a risk assessment and an updated financial plan for the project.

“The Hudson Tunnel Project’s acceptance into the Engineering phase of the Capital Investment Grant program has been years in the making, and we are thrilled to be even closer to the start of major construction on this critical Gateway Program project,” said Amtrak Executive Vice President, Capital Delivery Laura Mason. “We appreciate the efforts of the Biden Administration, Senator Schumer and Congress for helping us reach this important milestone, applaud their commitment to improving America’s infrastructure and express our thanks for the efforts of our GDC, New York and New Jersey partners toward winning the largest grant ever awarded in this country’s history for a mass transit and intercity rail project.”

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