Federal transportation officials sign off on $6.88 billion to complete federal funding for Gateway project

New York and New Jersey officials, joined by federal leaders, announced the final funding agreement Monday needed to complete the $16 billion Gateway Tunnel project, adding two new railway tracks under the Hudson River.

The federal Department of Transportation signed off on $6.88 billion in funding Monday, totaling $11 billion in federal commitments and $4.1 million in federal loans to New York and New Jersey.

“Less than two years ago, not a single portion of the Hudson River tunnel was under construction. Now both sides of the river are underway and today the first piece of equipment is in place for the Hudson River ground stabilization,” said Kris Kolluri, CEO of the Gateway Development Commission.

“We’re about to build a portal of opportunity, not just a tunnel of concrete and rebar,” he said.

The project will include a new tunnel with two new tracks across 2½ miles, carrying Amtrak and NJ Transit trains from Penn Station to Secaucus. Funding will also repair the 110-year-old tunnel beneath the Hudson that was damaged by Superstorm Sandy. Officials said it will also connect rail service from New Jersey to Moynihan Train Hall, where riders board the LIRR.

New York Gov. Kathy Hochul noted the project has languished over the years and the planning has run though four previous U.S. presidents and five governors before funding was completed by President Joe Biden, marking, “the largest federal infrastructure investment in American history.”

Matthew Cohen, president and CEO of the Long Island Association, a nonprofit business advocacy group, said, “Essentially, this is a win for Long Islanders … The better the regional economy does, the better the Long Island economy does.”

Transportation officials have said although the Gateway Tunnel is designed for Amtrak and NJ Transit trains, it may ease the burden on other trains and the LIRR traveling into Penn Station. Experts say the new tracks should free capacity at Penn Station, especially for the Long Island Rail Road, which operate the majority of trains.

Sen. Chuck Schumer, who helped secured the Gateway funding, said they plan to begin tunnel boring, but officials cautioned the work may take the next decade to complete. The project will add 95,000 union construction jobs and it is expected to generate $20 billion in economic impacts for New York and New Jersey.

 “We’re a country that can and should do big projects like Gateway,” Schumer said. “We spent a lot of time getting here, but this shows the importance of this project and this will make sure it goes to completion.”

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.