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.
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.
More Rail
Caltrain Board Approves FY27 Budget, Endorses Efficiency Measures
The move ensures Caltrain service will continue operating as usual in the near term, but long-term financial challenges remain for the rail agency absent a new revenue source.
Read More →
Alstom Acquires Delaware Site to Support Amtrak NextGen Acela Fleet
The company is investing more than $55 million to acquire and improve the property and will employ approximately 100 people at this site once it is operational.
Read More →
When Routine Fails: How Public Transit Must Adapt for the World Cup
The 2026 FIFA World Cup will test transit agencies’ ability to manage unpredictable travel patterns, making real-time data and operational flexibility critical to moving millions of visitors efficiently.
Read More →
California Selects Team for Nation’s First True High-Speed Rail Track and Systems Contract
The board action follows completion of track installation at the 150-acre southern railhead in Kern County, which will serve as the staging and distribution hub for high-speed track and systems installation.
Read More →
Seattle's Sound Transit Launches New Sounder Railcars into Service
Alstom manufactured all the cars under a $46.5 million contract and came into service in anticipation of summer crowds for soccer and baseball.
Read More →
Alstom Partners With Universities to Build Rail Talent Pipeline
The partnerships include a new engineering scholarship fund at Alfred State College in Western New York and collaborations with transportation centers at the University of Pennsylvania and New York University.
Read More →
Chicago's NITA Act Moves Into Next Phase as Service Improvements Begin
Rider-focused improvements will begin rolling out across the system immediately as CTA, Metra, and Pace increase service this summer in the six-county region.
Read More →
Seattle’s Sound Transit Adopts Updated ST3 System Plan
The updated system plan incorporates cost savings across the agency, including new revenue sources and financial policies, to set the agency on a sustainable path for the future.
Read More →
Inside Look: EMBARK Expands Fare-Free Transit Program Through New Public-Private Partnership
The OKC transit agency says sponsorship helps subsidize the Third Friday Free initiative while reducing barriers for first-time riders and boosting ridership across buses, streetcars, and river cruises.
Read More →
North Carolina's Metropolitan Transit Commission Concludes Decades of Leadership
To commemorate the occasion, current members of the MTC were presented with a custom painting of the Charlotte Transportation Center in Uptown.
Read More →