Governors Kathy Hochul and Phil Murphy sign $14B funding agreement for Gateway Hudson Tunnel project

NEW YORK — New York and New Jersey have crossed a major bridge toward building the Gateway Hudson Tunnel.

Governors Kathy Hochul and Phil Murphy signed a $14 billion funding agreement for phase one of the project to build two new rail tunnels under the Hudson River.

Both states will share the costs not covered by the federal government.

Those who ride Amtrak or NJ Transit know how frustrating it can be when there are issues with the current tunnels. The project is expected to increase capacity and speed up service. 

“You see what you’ve got here — thousands of people every couple of hours,” NJ Transit rider and Amtrak employee Todd Emhoff told CBS2’s Elijah Westbrook. 

Emhoff is a maintenance worker for Amtrak and takes NJ Transit to his construction site on a daily basis. 

“Well the two tunnels they have [are] about 112 years old, and when one goes out, you only have one track to use,” he explained. “It keeps a lot of guys working, and it would be better for emergencies.”

According to the Port Authority of New York and New Jersey, phase one will cost $2.7 billion. The federal government has agreed to pay 60% of it, which leaves New York and New Jersey to split the difference — $772.4 million, or $386.2 per state.

“I think it’s good for commuters. I think it would be beneficial and make delays and issues less prevalent,” said NJ Transit rider Esther Mordeler.

A recent report released in June by the Regional Plan Association said commuter demand is expected to surge by as much as 10% of pre-pandemic levels. 

“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,” Gov. Hochul said in a statement. 

Gov. Murphy said this “marks a pivotal milestone toward the completion of the most significant transportation project not just in New Jersey, but in the entire United States.”

Approval of phase 1 means construction could start as soon as next summer.