Biden seeks $700M in budget for Gateway tunnels as confidence in project grows
Federal officials expressed confidence Thursday in the work the Gateway Development Commission is doing so far to launch the $16.1 billion Hudson River tunnels expansion and replacement project, which bodes well for a full funding grant agreement down the road.
Nuria Fernandez, who heads the Federal Transit Administration, said that while she could not provide a timeline for when a funding agreement would be reached with the commission — the budding bistate agency overseeing the first phase of rail projects under the Hudson River — they are moving in the right direction.
"The project sponsors have been doing all the right things to position themselves to be getting to that outcome," she said, referring to the grant agreement, an essential document before major construction can begin.
$6.65 billion expected from feds
The agreement lays out the terms of the federal grant, which is expected to be $6.65 billion, about 45% of the projects' estimated cost. The remainder will be paid for by New York, New Jersey and Amtrak.
Fernandez said the Biden administration has confidence in the project's leadership, and are asking Congress to approve a $700 million allocation for the project, which was included in the president's budget presented Thursday.
If that money is approved, it will allow construction to begin shortly after the full funding grant agreement is reached, which the Gateway commission estimates will be spring 2024 — if the process with the federal government continues on an accelerated pace.
$700 million down payment
The $700 million would be the first tranche of the federal grant agreement funding made available for the project.
Frenandez said that putting the $700 million into Biden's budget proposal is a sign from the administration that they believe the commission is "identifying their project delivery, they’re identifying their funding commitments from other stakeholders."
Concerns about whether New York and New Jersey would pony up their portions of the cost had been a concern for years, one especially highlighted by the Trump administration that stalled advancement of the project over a political feud with U.S. Sen. Chuck Schumer, D-New York.
New confidence that NJ, NY will pay their share
That narrative has begun to change.
In July, New York and New Jersey signed an agreement that they would split the costs of the first phase of the Gateway project, which includes building a replacement of the Portal Bridge, an old swing bridge that carries rail tracks over the Hackensack River near Secaucus; constructing a new two-tube tunnel into New York Penn Station; and rehabilitating the existing 113-year-old tubes.
NJ Turnpike funds for train project
On Monday, the NJ Transit board is expected to sign off on an agreement with the state Treasury Department to turn over funds from the New Jersey Turnpike Authority that will be used to help pay for the Gateway commission's annual budget, which this year will be $58 million. Gov. Kathy Hochul also included New York's commitment to the commission budget in her state budget proposal that has to be signed off by the Legislature on April 1.
"All the agreements are starting to move along," said Kris Kolluri, who heads the Gateway Development Commission. "This is forward momentum and it is tangible proof of their commitment."
This article originally appeared on NorthJersey.com: Gateway tunnel project: Biden seeks federal funds for NJ-NY portal
