The project to build a new rail tunnel under the Hudson River has taken a big step forward.
State leaders and federal officials reached a framework agreement to fund the $20 billion project.
Amtrak and the federal government would cover half of the cost, and New York and New Jersey would pay the rest.
A special corporation within the Port Authority will run the new tunnel project and manage the funding.
The current rail tunnel is more than 100 years old and was already deteriorating before it was severely damaged by Hurricane Sandy.
Sen. Charles Schumer, who helped broker the deal, says the framework is an important step, but there's still a question over how each agency will pay for the project.
"Until now, it was as if everyone was in their separate dugout, waiting for somebody else to move. Now we’re all on the field. Everyone’s on the same team," Schumer said. "We’re only in the first inning. We’ve got to get the money. $20 billion is a lot of money. But at least everyone is on the same team and beginning to work together to make that happen.”
Governor Andrew Cuomo and New Jersey Governor Chris Christie proposed this type of funding arrangement over the summer. They said it was reasonable to ask the feds for such a big contribution because the tunnel is a key part of Amtrak's busy Northeast Corridor.