METRO Magazine Logo
MenuMENU
SearchSEARCH

FTA Announces Progress on Hudson River Tunnel Project

Once the project begins, it is expected to create more than 72,000 American jobs in the region.

FTA Announces Progress on Hudson River Tunnel Project

The Hudson River Tunnel project is particularly critical because the existing North River Tunnel serving Penn Station is more than 110 years old and was severely damaged during Superstorm Sandy in 2012.

Photo: NJ Transit

3 min to read


The Federal Transit Administration (FTA), part of the U.S. Department of Transportation, informed the Gateway Development Commission (GDC) that the Hudson River Tunnel project has received approval to enter the Engineering phase of the FTA Capital Investment Grants (CIG) program. 

Once the project begins, it is expected to create more than 72,000 American jobs in the region.

Ad Loading...

“Every day, 200,000 people pass through the North River Tunnel, and a closure affects not just the entire Northeast Corridor, but the entire country,” said U.S. Transportation Secretary Pete Buttigieg. “Today, we are proud to announce that the Hudson River Tunnel project is entering the Engineering phase, moving us a huge step closer to finally revitalizing and expanding this century-old piece of American infrastructure.” 

Hudson River Tunnel Project Details

The Hudson River Tunnel project is part of the Gateway Program, a series of strategic infrastructure investments designed to improve New York and New Jersey rail service.

The Hudson River Tunnel project is particularly critical because the existing North River Tunnel serving Penn Station is more than 110 years old and was severely damaged during Superstorm Sandy in 2012.

While the tunnel has been repaired frequently, its age and damaged condition present reliability concerns for more than 200,000 people who travel through the tunnel on more than 400 trains every weekday.

According to a study by the Northeast Corridor Commission, commuters in 2020 were delayed more than 210 hours due to maintenance issues. 

Ad Loading...

The Hudson River Tunnel project will build a new two-track rail tunnel from the Bergen Palisades in New Jersey to Manhattan, directly serving New York Penn Station and rehabilitating the existing North River Tunnel.

Additionally, nearly 5,000 new affordable housing units will be created in the adjacent Hudson Yards as part of the construction.

The project will improve New Jersey Transit and Amtrak service for a region that impacts more than 20% of the nation’s economy.

“Hundreds of thousands of Americans travel under the Hudson River every day, not just between New York and New Jersey but between points all along the East Coast,” said FTA Administrator Nuria Fernandez. "FTA is proud to invest in the Hudson River Tunnel, through the CIG program, so these rails can continue to carry millions of people and billions of dollars that help define our country’s economy every year.”

Once all financial, technical, and legal requirements are completed, FTA’s anticipated funding commitment to the Hudson River Tunnel project will be $6.88 billion, subject to the annual appropriation of funds by Congress.

Ad Loading...

The overall project cost is approximately $17.18 billion.

U.S. DOT's Support for Gateway Program

In addition to the Hudson River Tunnel project, U.S. DOT has provided support for the Gateway program including through a CIG grant agreement for Portal North Bridge, a Mega grant for the Hudson Yard Concrete Casing, which will provide the opening of the new Hudson River tunnel on the New York side, and most recently a RAISE grant for Tonnelle Avenue, which will provide the opening of the tunnel on the New Jersey side.

The Hudson River Tunnel project is also under consideration for Federal Railroad Administration grant funds. 

While moving into the Engineering phase means the Hudson River Tunnel project is one step closer to accessing billions of dollars in anticipated federal funding, this step also allows GDC to incur costs for engineering activities, demolition, utility relocation, property acquisition, and other non-construction costs, including procurement of specialized equipment and materials.

The CIG program is a multi-step, multi-year funding opportunity to help communities carry out transformational transit projects nationwide. More than five dozen potential projects are currently in various phases of the CIG “pipeline,” covering 23 states and every time zone.

Ad Loading...

The program received a significant authorization boost thanks to President Biden’s Bipartisan Infrastructure Law – up to $23 billion over five years to invest in new high-capacity transit projects.

More Management

An Amtrak Acela train at New York Penn Station
Railby Alex RomanAugust 3, 2026

Amtrak Board Advances Plan to Restructure Organization, Seeks Public Input

The proposal, developed by Amtrak management and approved by the board for further consideration, is intended to modernize the organization's structure while improving accountability, operational efficiency, and customer service.

Read More →
Cover of a Strada 360 guide titled "Turn Transit Data Into Action: How to solve common transit agency pain points with connected technology." The cover features a blurred transit bus, a gray grid background with orange accents, and text describing how connected technology helps transit agencies improve visibility, operational efficiency, maintenance, scheduling, and data-driven decision-making. An orange callout highlights the challenges facing today's transit landscape.
SponsoredAugust 2, 2026

Turn Transit Data Into Action

Discover how leading agencies are using connected technology to gain real-time visibility across operations, improve service reliability, and reduce disruptions.

Read More →
An aerial image of SMU/Mockingbird Station with text reading "Transit-Oriented Development. Your Questions, Explained."
Managementby Elora HaynesAugust 1, 2026

What Transit-Oriented Development Means for the Future of Public Transportation

Once viewed primarily as transit operators, agencies are now leveraging land, partnerships, and long-term planning to boost ridership, expand housing, and strengthen communities.

Read More →
Ad Loading...
A graphic with an image of railroad track in the background and text reading: "$22 Million for Transit Innovation, Updates to High-Speed Rail Rules."
Managementby Staff and News ReportsJuly 31, 2026

USDOT Announces $22 Million for Transit Innovation, Updates High-Speed Rail Rules

New federal transit funding will support safety, accessibility, and technology projects as updated rail regulations establish new noise standards for high-speed trains.

Read More →
A blue graphic with text reading "TCC Unveils Case Studies Ahead of Federal Funding Deadline."
Managementby Elora HaynesJuly 29, 2026

Transportation Construction Coalition Unveils Infrastructure Case Studies Ahead of Federal Funding Deadline

The coalition noted the next surface transportation bill should provide sustained investment in highways and public transit to strengthen freight movement, improve safety, and support economic growth.

Read More →
Fred Ferguson, President/CEO of the American Bus Association
Managementby Alex RomanJuly 29, 2026

People Movement: American Bus Association Extends Ferguson and More

METRO’s People Movement highlights the latest leadership changes, promotions, and personnel news across the public transit, motorcoach, and people mobility sectors.

Read More →
Ad Loading...
Driving Change: Award Winners Redefine Industry Standards
Technologyby Staff and News ReportsJuly 29, 2026

METRO Magazine Announces 2026 Innovative Solutions Awards Winners

Projects Recognized for Advancing Mobility Through Technology, Accessibility, Workforce Innovation, and Operational Excellence

Read More →
 An MBTA bus
Managementby StaffJuly 28, 2026

MBTA Rolls Out Pilot Programs to Cut Costs, Simplify Travel

Three new fare pilots — including unlimited two-hour transfers, reduced express bus fares, and free transit for eligible seniors — will launch this fall as Massachusetts extends popular commuter rail discounts through November.

Read More →
A public transit bus at a pedestrian crosswalk with text reading "Federal Transit Administration Makes $610 Million Available for Bus Projects."
Managementby StaffJuly 27, 2026

FTA Opens $610 Million Funding Opportunity for Bus Infrastructure Projects

The latest Notice of Funding Opportunity provides transit agencies with funding for bus facilities, fleet modernization, and low- and no-emission vehicles, with applications due September 21.

Read More →
Ad Loading...
A photo of an Amtrak train with a logo
Managementby Alex RomanJuly 24, 2026

Biz Briefs: STV teams with Amtrak, Motorcoach Operators Boost Fleet and Land Contracts, and More

From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.

Read More →