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Hudson Tunnel States Take Steps for Federal Construction Grants

Hudson Tunnel States Take Steps for Federal Construction Grants

(Bloomberg) -- New York and New Jersey are taking steps to overcome a barrier to federal funding for a Hudson rail tunnel with legislation for a bi-state commission to handle its finances.

President Donald Trump’s administration has pointed out that the Gateway Development Corp., an early overseer of the roughly $13 billion proposed tunnel, lacks the authority to accept construction grants. Bills to create a more powerful entity were cleared by the New York Assembly’s corporations, authorities and commissions committee on June 6 and referred to New Jersey’s Senate transportation committee on Monday.

The bill requires approval by the Assembly and Senate in both states and 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 cover the costs.

To contact the reporter on this story: Elise Young in Trenton at eyoung30@bloomberg.net

To contact the editors responsible for this story: Flynn McRoberts at fmcroberts1@bloomberg.net, Michael B. Marois, William Selway

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