By rosebell
With aim of completing the US$12bn federal contribution for the Hudson Tunnel Project, the Gateway Development Commission (GDC) has executed the US$3.8bn Federal-State Partnership (FSP) Grant agreement with the Federal Railroad Administration (FRA).
Additionally, this action immediately obligates the initial US$1.9bn from the grant.
In addition to the $US800m in New Starts Capital Investment Grant Program funding that has already been obligated, currentl GDC has US$2.7bn in grant funds available for the project, whereas the local share of the Hudson Tunnel Project comprising US$4bn is available to advance construction.
According to GDC commissioners Alicia Glen, Balpreet Grewal- Virk and Tony Coscia: “While the commission had had the full funding for the project committed for months, this was one of the first major infusions of funds that enables us to turn these commitments into reality. With nearly US$3bn in the bank, the full economic impact of this massive project is beginning to be felt.”
The commission was now well-prepared to execute the next phase of major construction and continue moving forward with confidence as we ramp up and prepare to begin tunnel boring activity next year,” said GDC CEO Kris Kolluri.
In order to funding capital projects that decrease the state of good repair backlog, improve performance, or expand or establish new intercity passenger rail service, the FSP Grant Program was established by the Infrastructure Investment and Jobs Act. The date that GDC applied for an FSP Grant was March 2023, while in November 2023 all US$3.8bn requested was committed.
As the largest federal funding commitment to a rail transport project in modern history, this grant is part of the historic US$12bn in federal funding to the HTP. Also, covering 70% of the HTP’s cost, this federal commitment is going to save New York and New Jersey billions compared to the original plan to split costs 50-50 between the federal and local partners.
Considering that the construction process on the new river crossing is undergoing, the first concrete was recently poured for the new tunnel at the Tonnelle Avenue Bridge and Utility Relocation Project in North Bergen, New Jersey, and work is under way on Phase 2 of the Hudson River Ground Stabilisation Project, which is preparing the Hudson riverbed for tunnel boring.
