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NYC Rail Tunnel Spurned by Trump Wins Backing in Biden’s Plan

NYC Rail Tunnel Spurned by Trump Wins Backing in Biden’s Plan

(Bloomberg) -- Joe Biden has promised New Yorkers a project that President Donald Trump has refused to deliver to his hometown: a new tunnel connecting Manhattan and New Jersey that would eliminate the biggest bottleneck for train traffic on the East Coast.

The Democratic presidential candidate, who was known for riding Amtrak during his time as vice president and a U.S. Senator, included the project in a $1.3 trillion public works plan released Thursday, seizing on an issue that Trump campaigned on but never advanced in Congress. It would be part of creating a high-speed railroad in the northeast that could cut travel time between Washington, D.C., and New York in half.

The 109-year-old tunnel under the Hudson River was corroded by a flood of saltwater after being inundated during Hurricane Sandy. The $11 billion plan to repair it and build a second one is a top priority for New York and New Jersey officials: nearly 200,000 commuters on about 450 Amtrak and NJ Transit trains pass through it every day. Problems related to the passageway have caused thousands of hours of delays, proving a major hassle for New Jersey commuters.

“I cannot overemphasize how essential this project is,” said Howard Cure, director of municipal bond research at Evercore Wealth Management. “They’re just one big storm away from a real disaster.”

NYC Rail Tunnel Spurned by Trump Wins Backing in Biden’s Plan

The tunnel construction has been at the center of a power struggle between the Democratic strongholds of New York and New Jersey and the Trump administration.

Under former President Barack Obama, the federal government agreed to split the cost with the states. But after Trump was sworn in, federal officials put the project near the bottom of the priority list and said it was ineligible for U.S. funds because local officials haven’t committed enough money.

Trump’s failure to enact a national infrastructure program has given Democrats an issue to seize on in the 2020 race as local officials float their own plans to make up for the lack of action in Washington.

In March, U.S. Senator Amy Klobuchar became the first Democratic presidential candidate to release a detailed infrastructure plan, calling for $1 trillion in investment.

Meanwhile, local governments are acting on their own. New York’s Metropolitan Transportation Authority is planning to use revenue from a new congestion fee on drivers in the city to improve the subway and other public transport. Connecticut Governor Ned Lamont recently released a $21 billion plan for transportation there and Massachusetts Governor Charlie Baker proposed an $18 billion for the same purpose.

“There are a lot of infrastructure needs in the region,” Cure said. “New Jersey Transit has been neglected for so long that it needs to be jump-started. The tunnel is just another added to the list.”

--With assistance from Shruti Date Singh, Elise Young and Martin Z. Braun.

To contact the reporter on this story: Danielle Moran in New York at dmoran21@bloomberg.net

To contact the editors responsible for this story: Elizabeth Campbell at ecampbell14@bloomberg.net, William Selway, Michael B. Marois

©2019 Bloomberg L.P.