Biden announces $292 million in funding for Hudson tunnel project

Biden announces $292 million in funding for Hudson tunnel project

By Trains Staff | January 31, 2023

| Last updated on February 6, 2024


Grants will allow completion of early work to project route of tunnel

President of the U.S. speaking in rail facility surrounded by officials and railroad workers
President Joe Biden speaks Tuesday at the Long Island Rail Road’s West Side Yard at Hudson Yards in New York. Office of New York Gov. Kathy Hochul

NEW YORK — On a second consecutive day highlighting plans to support rail infrastructure projects, President Joe Biden said today (Tuesday, Jan. 31) that the federal government would provide $292 million in grants for the early stages of the effort to build new rail tunnels beneath the Hudson River to connect New York and New Jersey.

“This is just the beginning,” Biden said, according to a New York Times report, during an appearance at the Long Island Rail Road’s West Side Yard at Hudson Yards. “The beginning of finally constructing a 21st century rail system.

That funding will provide only a fraction of the money for what is expected to be a $16 billion project to build the new tunnels for the Northeast Corridor route into Penn Station, then rehabilitate the existing bores, damaged by flooding during Hurricane Sandy. The tunnels are part of the larger $30 billion Gateway project, which includes additional Northeast Corridor infrastructure work. One part of overall project, replacement for the aging and problem-plagued Portal Bridge over the Hackensack River in New Jersey, has been funded and work has begun [see “Groundbreaking marks start of work …,” Trains News Wire, Aug. 2, 2022].

Biden was joined by officials including New York Gov. Kathy Hochul, who called the project “the lifeblood of not just our region, but the entire nation’s economy,” and New Jersey Gov. Phil Murphy. The two governors have previously reached agreement on how to fund their states’ portion of the tunnel project [see “New York, New Jersey sign agreement …,” News Wire, July 7, 2022].

The White House said the funding announced Tuesday is for a $649 million project that will complete concrete casing to preserve the future right-of-way for the new tunnel between Penn Station and the edge of the Hudson River, protecting the tunnel route from future development Hudson Yards development.

“Completing the last phase of the concrete casing kicks us into high gear on the Hudson Tunnel Project,” Amtrak CEO Stephen Gardner said in a statement. “The new tunnel is essential to the future of the region and the nation, and will improve the customer experience for millions, create career opportunities for thousands, and help us fight climate change.”

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