By David Shepardson
WASHINGTON (Reuters) – The Biden administration is set to allocate $3.8 billion towards the construction of a long-awaited railway tunnel connecting New York City and New Jersey, according to state officials on Friday.
The federal government will be providing over $11 billion from the total cost of $17.2 billion for the Hudson Tunnel Project. This project aims to repair an existing tunnel and construct a new one to serve Amtrak and state commuter lines connecting New Jersey and Manhattan, says Senate Majority Leader Chuck Schumer.
The significance of this project lies in the fact that any malfunction of the current tunnel, which was severely damaged during Superstorm Sandy in 2012, would greatly impact commuting in the largest metropolitan area in the United States. This area alone contributes to 10% of the nation’s economic output.
Back in July, the White House had already approved $6.88 billion in funding for the project through the Federal Transit Administration.
The commencement of construction on the Hudson Tunnel Project was celebrated by officials such as Schumer, Transportation Secretary Pete Buttigieg, and New York Governor Kathy Hochul in New York.
Buttigieg emphasized that the project will lead to reduced traveler delays, create 72,000 jobs, and generate an economic activity of $19 billion. He added, “This project is the largest of its kind in modern American history.”
The discussions surrounding this project prevailed in Washington for more than a decade after the rail tunnel in the New York City area suffered damage during Superstorm Sandy. The 112-year-old tunnel handles 200,000 passenger trips daily for New Jersey Transit and Amtrak along the Northeast Corridor.
In 2010, the then-Governor of New Jersey, Chris Christie, withdrew state funding for the tunnel. This led to debates between the Trump administration and Congressional Democrats over whether the federal government should contribute to the tunnel’s replacement.
New Jersey and New York are contributing 30% of the costs, while Amtrak is providing $1 billion in funding, as stated by Schumer.
The Gateway Program, which encompasses the states’ efforts to revitalize a significant portion of the antiquated infrastructure in the Northeast Corridor rail line between Newark, New Jersey, and New York City, is also part of this initiative.
(Reporting by David Shepardson; Editing by Nick Zieminski)
