NJ & NY Agree To Split Cost of Hudson River Tunnel Project

Morristown Minute

Hochul and Murphy agree to split costs on project to build new train tunnels from New Jersey under the Hudson River into Penn Station New York.

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For two decades political entanglements have held back perhaps the most ambitious transportation project in the country - plans to dig new train tunnels under the Hudson River from NJ into NY Penn Station.

On Tuesday, Governor Phil Murphy and Governor Kathy Hochul signed the Phase One Memorandum of Understanding which outlines the 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 the MOU advances the Gateway program to its next phase which details the parties’ responsibilities with respect to the delivery of the Hudson Tunnel Project and the cost/share split between the two states.

Under the memorandum, the Governors agreed to an even split (50-50) of the costs and federal funds associated with the two Gateway projects.

Phase One of the Gateway Program is funded by a combination of federal and local sources; the Port Authority of New York and New Jersey (PANYNJ)’s total commitment for Phase One is $2.7 billion.

For Portal North Bridge (PNB), 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 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. Additionally, Governor Phill Murphy has previously stated that NJ intends to issue bonds to raise its share of funds for the two massive transportation projects.

In 2015 Christie and Cuomo came to a similar agreement that never saw any progress; however seemingly similar, Tuesday's announcement is a sign that the Gateway Projects are moving forward. 

“Today marks a pivotal milestone toward the completion of the most significant transportation project not just in New Jersey, but in the entire United States,” said Governor Murphy. “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. I thank Governor Hochul, as well as our Gateway Program partners, our respective federal and state delegations, and the U.S. Department of Transportation for their support in achieving this next great step.”
"The Gateway Hudson Tunnel Project is vital to the Northeast corridor, and today’s announcement is a critical step forward in turning this vision into reality,” 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. I thank my partner Governor Murphy, as well as our state and federal representatives, especially Senate Majority Leader Chuck Schumer and the Biden Administration, for their tireless efforts on this transformative project."

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