NYC Gateway Tunnel gets set for Federal funding as U.S. raises priority

The Gateway commuter-rail tunnel project in New York and New Jersey is receiving a long-awaited priority boost that will make it eligible for federal funding. 

The Federal Transit Administration, which provides grants for local bus, subway and rail systems, is raising the project to “medium-high” from “medium-low,” according to a news release from the agency. The rating needs to be at least medium to qualify for money.

“The day many commuters never thought they’d ever see is finally coming,” New Jersey Governor Phil Murphy said in an emailed statement. “We are closer than ever to securing a fairly and fully funded Gateway Program and beginning the work of delivering the safe and modern infrastructure our people and economy deserve.”

President Joe Biden’s infrastructure law appropriated an additional $8 billion over five years to the FTA’s Capital Investment Grant program, which included Gateway on a list of priorities, but the $12.4 billion project was under review. 

The Partnership for New York City, the Association for a Better New York, the General Contractors Association of New York and other business groups had urged the FTA to issue a higher rating. 

“The Gateway Hudson Tunnel project is one of the most critically important infrastructure investments of our generation,” New York Governor Kathy Hochul said in an emailed statement. “The new favorable project rating is proof of President Biden’s ongoing commitment to fighting for and investing in our nation’s transit networks.”

Gateway is crucial for Amtrak’s Northeast Corridor, its busiest route, carrying more than 2,200 daily trains and stretching from Washington to Boston. The project includes construction of a new commuter-rail tunnel under the Hudson River to Manhattan as well as replacement of the existing tunnel.

Construction permits for Gateway are in place, but the project still needs $5.6 billion of federal money. Amtrak will pay $1.4 billion, while New York, New Jersey and the bistate Port Authority pay a combined $6.1 billion. 

“Today’s action moves us a big step closer to a true federal-local partnership that finally brings 21st century rail infrastructure to the heart of the nation’s economy,” according to a news release from the Gateway Development Commission.