Feds nix 50/50 plan for Hudson River Tunnel project
A letter from FTA to New York and New Jersey officials said the first phase of the project, estimated at $11 billion, seeks a 50% federal investment that is "considerably higher than much existing precedent for past 'mega projects'" and would deplete the existing grant program.
Western Portal at Bergen Hill.
Western Portal at Bergen Hill.
NEWARK, N.J. — NorthJersey.Com reports that a plan to pay for an estimated $13 billion rail tunnel under the Hudson River raises serious concerns, including that it relies on a "non-existent" agreement that would have the federal government foot half the bill, according to a letter from the Federal Transit Administration (FTA).
In a letter to New York and New Jersey officials, FTA Deputy Administrator K. Jane Williams wrote that a recent funding proposal by the states for the first phase of the project, estimated at $11 billion, seeks a 50% federal investment that is "considerably higher than much existing precedent for past 'mega projects'" and would deplete the existing grant program.
RELATED: NJ Transit considers surcharge to pay for tunnel project
The letter also criticized the states' reliance on a 50-50 funding agreement with the federal government.
"We consider it unhelpful to reference a non-existent 'agreement' rather than directly address the responsibility for funding a local project where nine out of 10 passengers are local transit riders," Williams wrote. For the full story, click here.
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