The Gateway Development Commission (GDC) has executed the $3.8 billion Federal-State Partnership (FSP) Grant agreement with the Federal Railroad Administration (FRA), completing the $12 billion federal contribution for the Hudson Tunnel Project (HTP). The action also immediately obligates the initial $1.9 billion from the grant. Together with the $800 million in New Starts Capital Investment Grant (CIG) Program funding that has already been obligated, GDC now has $2.7 billion in grant funds immediately available for construction of the HTP.

In a joint statement, GDC Co-Chairs Alicia Glen and Balpreet Grewal-Virk, along with Vice Chair Tony Coscia, announced that the execution of $3.8 billion will enable the GDC to bring the full funding commitment to fruition. With nearly $3 billion available cash, the significant economic impact of this massive project is beginning to be realized.

GDC applied for an FSP Grant in March 2023 and all $3.8 billion requested was committed in November 2023. This grant is part of the historic $12 billion in federal funding to the HTP – the largest federal funding commitment to a rail transportation project in modern history.

The Hudson River Tunnel is part of the overall Gateway project which improves a 10-mile stretch of the Norteast Rail Corridor, including the new tunnel under the Hudson.The new tunnel will be in service by 2035 and the full rehabilitation of the existing tunnel will be complete by 2038. Construction of the HTP started on both sides of the Hudson River in November 2023 and is expected to create 95,000 jobs and generate $19.6 billion in economic activity.

In February 2024, GZ was selected as part of the HTP Delivery Partner providing project management, construction management, and engineering services to the GDC and its partners Amtrak, the Port Authority of New York & New Jersey (PANYNJ), and New Jersey Transit (NJT).

We would like to congratulate the GDC and its partners on this crucial milestone, and we look forward to to supporting our clients to a successful completion of the project.

To read more about GZ’s involvement in the Gateway Program, visit our project page.

For complete GDC press release please visit this site.

Workers pour concrete for the new bridge abutments at the Tonnelle Avenue Project. (Courtesy of GDC).