NY/NJ Governors To Split Cost of Phase One of Portal North Bridge & Hudson Tunnel Projects

More than 10 years after Gov. Chris Christie killed the Hudson River Transit Tunnel, Governor Phil Murphy and Governor Kathy Hochul signed Tuesday the Phase One Memorandum of Understanding required by the Gateway Development Commission Act along with Port Authority of New York and New Jersey (PANYNJ) Executive Director Rick Cotton.

The memorandum outlines sources, uses, and timing of funding on behalf of New Jersey and New York for Phase One Gateway Projects: Portal North Bridge and the Hudson Tunnel Project. Signing this MOU advances the Gateway Program to its next phase, which will detail the parties’ responsibilities with respect to delivery of the Hudson Tunnel Project and move forward in the federal project review.

Murphy called the signing “a pivotal milestone toward the completion of the most significant transportation project not just in New Jersey, but in the entire United States.”

“The Gateway Project reflects the importance of New Jersey’s regional partnerships and its alignment with the Biden administration’s infrastructure and transportation priorities. As we proceed with construction of a new tunnel under the Hudson River, we advance one step closer toward a New Jersey that is better connected and better positioned to reap the full economic benefits of our status as a regional crossroads,” said Murphy, thanking Governor Hochul, Gateway Program partners, and the U.S. Department of Transportation.

Phase One of the Gateway Program is funded by a combination of federal and local sources. On behalf of the states, PANYNJ’s total commitment for Phase One is $2.7 billion. For Portal North Bridge, federal funding sources total approximately 60% of the total cost, leaving the States’ PNB Commitment of $772.4 million to be split by New Jersey and New York at $386.2 million per state. For the rest of the Hudson Tunnel Project, the States will similarly split the local share 50-50. The States intend to work with their partners and federal entities to aggressively pursue greater federal sources of funding for the Gateway Program through the Infrastructure Investment and Jobs Act.

“The Gateway Hudson Tunnel Project is vital to the Northeast corridor,” Governor Hochul said. “By signing the Phase One Memorandum of Understanding, we are establishing the framework to get this project over the finish line and are making good on our promise to modernize the state’s transportation infrastructure and create a mass transit system worthy of New Yorkers.”

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