One of the largest infrastructure projects in American history took a huge step forward with billions of dollars in support from the Biden-Harris Administration and the Bipartisan Infrastructure Law.

The Hudson River Tunnel project will construct a critical new rail tunnel between New York and New Jersey along a vital economic corridor — just one area of focus for investment across the country as part of the Biden-Harris Administration’s $66 billion investment in passenger rail.

It represents the largest project in the history of the U.S. Department of Transportation (USDOT).

Historic Funding for Hudson River Continues

In New York, USDOT officials: 

• Signed a Full Funding Grant Agreement through the Federal Transit Administration’s (FTA) Capital Investment Grants (CIG) program, allowing FTA to invest close to $6.9 billion to help build the tunnel and rehabilitate the existing North River Tunnel, representing the largest grant ever signed by FTA.

• Announced that U.S. Transportation Secretary Buttigieg approved three Railroad Rehabilitation and Improvement Financing (RRIF) loans through DOT’s Build America Bureau totaling $4.1 billion, which will provide financial support at below-market interest rates.

“For decades, Americans watched one of the most heavily-used train tunnels in the hemisphere deteriorate and become a bottleneck that affected travelers from New England to the Mid-Atlantic and beyond,” said U.S. Transportation Secretary Pete Buttigieg. “Using funds from the President's infrastructure law, we are building a new tunnel that improves train travel for millions of Americans and revitalizes a rail corridor that is essential to so much of the nation's economy. And as one of the cathedrals of American infrastructure, this project can demonstrate America's capacity to build big things together in the 21st Century.”

The Hudson Tunnel Project

The Hudson Tunnel Project encompasses a range of components, including a new double-track tunnel between the Bergen Palisades in New Jersey and Manhattan in New York City, rehabilitating the North River Tunnel damaged by Superstorm Sandy in 2012, and creating a concrete casing at Hudson Yards to allow the new tunnel to connect to New York-Penn Station.

The elements will collectively enhance service, improve reliability, modernize design, and mitigate the impact of future natural disasters, ensuring a seamless rail network.

“It is important to realize that as we improve New Jersey Transit and Amtrak service in and out of Manhattan, we will improve train and transit service for a region that impacts more than 20% of the nation’s economy,” said FTA Acting Administrator Veronica Vanterpool. “FTA is proud to invest in the Hudson Tunnel project so these rails can continue to carry millions of people who keep the American economy humming.”

Impact of Tunnel Project When It Opens

When the new tunnel and the rehabilitated tunnel open, estimated by 2038, the project will provide four modern rail tunnels for Amtrak and NJ Transit trains. In addition, the project will provide the capability to significantly expand capacity in the future.

Additional project benefits include building resiliency and safeguarding rail operations against future extreme weather events; managing floods on both sides of the Hudson River; and creating a safer environment for first responders, maintenance workers, and the public, especially in the event of an evacuation.

In addition to FTA funding and the recent announcement from the Build America Bureau, other sources of USDOT support for the project include:

• $3.8 billion through the Federal Railroad Administration FY 2022-2023 Federal-State Partnership for Intercity Passenger Rail Program for the Northeast Corridor Program.

• $1 billion through Amtrak annual grant funding.

• $25 million through the United States Department of Transportation 2023 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program for the Tonnelle Avenue Bridge Project.

• $292.1 million through the USDOT 2022 MEGA Grant program for the Hudson Yard Concrete Casing Phase 3 project.