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.
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