N.Y., N.J. Edge Closer to Path for Financing Hudson River Tunnel

(Bloomberg) -- The legislatures of New York and New Jersey have approved the formation of a bi-state commission to handle the finances for a new commuter-rail tunnel under the Hudson River, taking another step to overcome a barrier to funding for the project.

Lawmakers in both states passed an identical bill, titled the Gateway Development Commission Act, that would create an entity to take over oversight of the roughly $13 billion proposed tunnel. The Gateway Development Corp., a non-profit that was an early overseer of the project, lacks the authority to accept federal construction grants.

The bill require signatures from Governors Andrew Cuomo and Phil Murphy, Democrats who are pushing for construction of a tunnel crucial to the Northeast Corridor, the busiest U.S. passenger rail route. The existing century-old, flood-damaged tube linking New Jersey to Manhattan must be closed in less than 20 years for reconstruction, Amtrak has said. The Trump administration has resisted funding the project, saying local money should pay for it.

Murphy expressed support for the bill. "The efforts of the New Jersey and New York Legislatures to fully stand up a bi-state commission to oversee the Gateway Program is just the first step toward ensuring its timely and efficient delivery," he said in a statement.

Cuomo, calling Gateway the “most urgent infrastructure project in the country,” said passage of the bills in both states will “take us one step closer to delivering a crucial project for our nation’s economy and security while restoring our role as a global leader in infrastructure.”

To contact the reporter on this story: Donald Moore in New York at dmoore71@bloomberg.net

To contact the editors responsible for this story: Stacie Sherman at sbabula@bloomberg.net, William Selway

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