New Financial Plan Shows Strong Commitment from All Parties and the Cost of Delay; Coalition Calls on the FTA for a Swift Improvement to the Project’s Rating
NEW YORK, NY - Today, the Build Gateway Now Coalition applauded the release of the updated financial plan for the Hudson Tunnel Project, which outlined the firm commitments of its project partners in order to improve the project’s rating. The Build Gateway Now Coalition called for decisive action from the Federal Transit Administration (FTA) to make the Hudson Tunnel project eligible for federal funding.
With updated guidance from the Biden Administration that dictates federal loans can be used to cover the local share of the project cost, local commitments can be made in more detail. New York State recently affirmed its financial commitment to the project in its FY22 Enacted Capital Program and Financing Plan, which indicates the state plans to use Railroad Rehabilitation & Improvement Financing (RRIF) loans to cover their share of the project’s cost.
The increased overall cost of the project is a direct result of hurdles built by the previous Federal Administration, which resulted in years of delay. We fully expect all project partners to contain costs and bring the project in on or under budget. Continuing the work they have done over the past four years to achieve that by completing early work to reduce risk and advancing the planning process.
The benefits of the Hudson Tunnel Project are large and twofold:
It avoids negative consequences of a partial shutdown of the existing North River Tunnel--which would cost the economy $16 billion, $7 billion in lost tax revenue, and a loss of nearly $23 billion in lost property value.
It creates multiple positive economic impacts of building the new Hudson River Tunnel and repairing the existing one, which would create over 70,000 jobs and generate over $19 billion in economic benefits.
Pre-construction work for the Hudson Tunnel project is already underway with the release of the Final Environmental Impact Statement and positive Record of Decision from the U.S. Department of Transportation. With an improved rating, a full funding agreement for the project can be reached next year to allow construction to begin in earnest. The Build Gateway Now Coalition will continue to support other major investments in our rail infrastructure, including the passage of related federal legislation, which is essential to rebuilding our outdated and crumbling infrastructure.
“As the financial plan indicates, the time to build the Hudson Tunnel Project is now,” said Brian Fritsch, Campaign Manager of the Build Gateway Now Coalition. “We hope the FTA will upgrade the rating of the Hudson Tunnel project quickly to keep the project moving forward. This will avoid future delays, overcrowded trains, and cost increases due to the tunnel’s age and poor condition and help with cost containment in the long run. To make our region more competitive, resilient, and put people back to work following the pandemic, we must seize this opportunity to finally build the nation’s most urgent infrastructure project.”
About the Build Gateway Now Coalition:
Build Gateway Now is a coalition of over 45 civic, labor, business, and elected groups who know Gateway is the nation’s most important infrastructure project and a critical priority for the nation’s economy. Learn more at buildgateway.org or follow us on Twitter @build_gateway.
Coalition members include: Regional Plan Association; ALM Consulting Group; Amalgamated Transit Union (ATU); Association for a Better New York (ABNY); Brookfield Properties; Central Jersey Transportation Forum; Commerce and Industry Association of New Jersey; Duane Morris LLP; ELEC825; Environmental Defense Fund (EDF); Environment NJ; General Contractors Association (GCA); HNTB; Housing Community Development Network of NJ; Jacobs; JPC Group, Inc.; Lotus Equity Group; Menlo Realty Ventures; NAIOP New Jersey; Natural Resources Defense Council (NRDC); New Jersey Future; New Jersey State Chamber of Commerce; New Jersey League of Conservation Voters (NJLCV); New Jersey Policy Perspective; New York Building Congress; New York League of Conservation Voters (NYLCV); Newark Alliance; NEWARK Community Economic Development Corporation; Newark Regional Business Partnership; PACO Technologies Inc.; Partnership for NYC; Princeton University; Raritan Valley Line Mayor’s Alliance, Raritan Valley Rail Coalition; Riders Alliance; Right Track for Long Island Coalition; Siemens; Somerset County Business Partnership; Straphangers Campaign; Tantum Real Estate; The Durst Organization; The Related Companies; Tri-State Transportation Campaign; Two Trees; Utility & Transportation Contractors Association NJ (UTCA of NJ); Vornado Realty Trust; WSP, Yale University
