A long-awaited critical infrastructure project could soon be full steam ahead, regardless of who is president next year.

Gateway Development Commission CEO Kris Kolluri told Spectrum News NY1 that they are close to unlocking billions of additional federal dollars for a new train tunnel under the Hudson River.

“We will be at a point of no return,” Kolluri said.

What You Need To Know

  • The head of the Gateway Development Commission said he expects to put the finishing touches on a federal grant agreement in the next three months, making an additional $6.88 billion available to build a new two-track tunnel under the Hudson River
  • Gateway Development Commission CEO Kris Kolluri credits the bipartisan infrastructure law signed by President Joe Biden in 2021 for helping advance the project
  • Former President Donald Trump, who is vying to return to the White House, is accused of holding up funding for the tunnel project during his term in office, delaying the start of construction
  • If all goes according to plan, the financial agreements will be in place well ahead of any potential presidential handoff in January, complicating any potential effort by Trump to stall the project should he win in November

They expect to put the finishing touches on a federal grant agreement in the next three months, making an additional $6.88 billion available to build the new two-track tunnel connecting New Jersey and New York City, which serves Amtrak and New Jersey Transit. 

That funding will bring the total federal financial commitment to roughly $12 billion. New York, New Jersey and the Port Authority of New York and New Jersey have pledged a combined $4 billion to the project.

“We're already under construction in New York, New Jersey, and we're about to start construction on the Hudson River in the next month or so,” Kolluri said. “Once the full funding grant agreement comes in, we'll be ready to award the first two tunnel contracts sometime in the fall of this year.”

Notably, if all goes according to plan, the financial agreements will be in place well ahead of a potential presidential transition in January. 

Former President Donald Trump, who is vying to return to the White House, is accused of holding up funding for the project during his term in office, delaying the start of construction.

Asked about the possibility of Trump trying to stall things again should he win in November, Kolluri pointed to the estimated 95,000 jobs the project is expected to create and the roughly $20 billion it is expected to contribute to the national economy.

“If you just look at it from that standpoint, politically or otherwise, I don't know how anybody can make a decision that this project is bad for the country,” Kolluri said.

Also, he said, who wants a half-built tunnel?

The current tunnel is more than 100 years old and sustained damage during Hurricane Sandy.

Kolluri says that were it not for the bipartisan infrastructure law signed by President Joe Biden in 2021 and the funding that came with it, the tunnel project would by no means be this far along.

“The federal government is going to chip in 73% of the project, which has not happened on any other project,” Kolluri said. 

The goal is to have the tunnel completed by 2035.

In a statement, the Federal Transit Administration (FTA) said they continue “to work with the Gateway Development Commission to ensure that the Hudson River Tunnel project meets all requirements needed to be eligible for a Full Funding Grant Agreement (FFGA).”

“When those requirements are met, and mandatory notifications are complete, that FFGA can be signed, finalizing FTA funding for the project,” the FTA added.