Inside the Gateway Tunnel Project: This comprehensive look at the project explores the federal funding it secured, the key milestones in its construction timeline, and the long-term economic and infrastructure benefits it promises for the region and beyond.
Gateway tunnel project received final green light last year with $6.88 billion in federal funding.
At the time, Senator Chuck Schumer of New York said the agreement for the federal government to fund most of the $16 billion project meant the long-delayed plan was “all systems go.”
At the time of the announcement funding, the Gateway Development Commission spokesperson Steve Sigmund said in an emailed statement, referring to the capital investment grants, ‘The full funding agreement for the $6.88 billion CIG grant completes the $12 billion in federal funding for the Hudson Tunnel Project, the largest ever federal commitment to a mass transit project
The federal grant, the largest ever awarded to a mass-transit infrastructure project in the country, completed the funding puzzle and final green light for the long-delayed tunnel between New Jersey and Pennsylvania Station in Manhattan.
The project seeks to ease congestion under the Hudson River by adding a new tunnel and making upgrades to the more than a century-old existing tunnel. It’s also a critical update for Amtrak’s busiest route — the Northeast corridor — which carries more than 2,200 daily trains and stretches from Washington to Boston.
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Inside the Gateway Tunnel Project: When Did Construction Begin?
Construction has officially begun on several early work components of the project on both sides of the Hudson River.
In Manhattan, work is underway on the Hudson Yards Concrete Casing – Section 3 Project, which started in November 2023. This involves building the final segment of the underground passageway connecting to the new tunnel
In North Bergen, New Jersey, work started in November 2023 on the Tonnelle Avenue Bridge and Utility Relocation Project. This involves building a new roadway bridge above the future rail line and creating access for Tunnel Boring Machines. This project is expected to be completed by the fall of 2025.
The current schedule anticipates the new tunnel will be operational by 2035.
The Gateway project represents the second attempt at building an additional rail tunnel to increase capacity and improve the reliability of train service between New York and points west and south. The existing pair of single-track tunnels, which are more than 110 years old, suffered damage from flooding during Hurricane Sandy in 2012. The final green light for the Gateway Project paves the way for work to start.
In 2010, work began to make way for a different rail tunnel under the Hudson known as Access to the Region’s Core, or ARC. But before signing a similar funding agreement with the federal Department of Transportation, Chris Christie, the Republican governor of New Jersey at the time, canceled the project and returned some money to Washington.
Funding
At the time, July 8, 2024, when the Gateway Development Commission (GDC) signed the FFGA, effectively securing the commitment of the $6.88 billion. Mr. Schumer stated that the Gateway Project’s final green light, the $6.88 billion Full Funding Grant Agreement, increased the federal funding committed to the Gateway project to approximately $12 billion, covering about 70 percent of its estimated total cost. This total includes roughly $1 billion from Amtrak, the owner of the existing tunnels and Penn Station.
New York and New Jersey will supply the balance, along with any overruns, Mr. Schumer said.
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$1.18 Billion Contract for Manhattan Tunnel, a Segment of the Hudson Tunnel Project (HTP)
On February 3, 2025, The GDC Board of Commissioners awarded the $1.18B Manhattan Tunnel Project contract, a segment of the Hudson Tunnel Project (HTP) to the Frontier-Kemper-Tutor-Perini joint venture. The board also approved the issuance of the notice to proceed with construction. Commissioners also approved a Memorandum of Understanding (MOU) related to the Project Labor Agreement established last year with the unions working on the project.
Construction on this segment of the Hudson Tunnel Project (HTP) is set to commence in the coming months, with completion projected for 2029. An initial estimate by EY suggests the project will generate approximately 15,800 new jobs.
The project scope includes designing and building part of a new two-track Hudson River crossing. This work will run from the Hudson River Manhattan Bulkhead to a concrete casing across 12th Avenue in the Hudson Yards.
The work also includes the clearing of obstructions to provide clearance for tunnel boring machines digging beneath the Bulkhead and into Manhattan. Improvements will also be made to protect existing infrastructure. Including the Bulkhead and sewer lines – during the course of the work.
Gateway Tunnel Project: Economic Impact
A newly released report by the New York–based Regional Plan Association makes a compelling economic case for long-term investment in the region’s rail infrastructure. According to the report, constructing a new trans-Hudson rail tunnel—along with related infrastructure improvements—could generate a staggering $445 billion in economic activity across both the regional and national economies.
The Gateway Program’s construction phase, which includes the long-anticipated rail tunnel, will generate approximately $42.8 billion in regional economic activity. Once completed, the program will deliver $230 billion in long-term regional economic benefits and create an additional $170 billion in economic gains nationwide.
