NJ Receiving $4.47B from $16.4B Northeast Corridor Initiative

On Nov 6, 2023

The U.S. Department of Transportation’s Federal Railroad Administration (FRA) announced it has awarded $16.4 billion for 25 passenger rail projects along the Northeast Corridor (NEC), including approximately $4.47 billion for projects in New Jersey, the largest of which is $3.8 billion for the Gateway Program’s Hudson Tunnel Project Systems and Fit Out.

The $16.4 billion in funding, which will support over 100,000 good-paying construction jobs, is the latest in a series of major rail investments made under the Biden administration to build a modern rail network. The investment will overhaul infrastructure that outdates 99% of all living Americans by replacing or upgrading 12 major bridges and tunnels that are over 100 years old.

According to Gov. Phil Murphy, “The $4.47 billion in federal funding will undeniably transform New Jersey’s passenger rail infrastructure and benefit our communities for decades to come. This historic investment demonstrates President Biden’s commitment to updating our nation’s aging infrastructure and prioritizing the public transportation so many Americans rely upon.

“The funding for the Gateway Program will support efforts my administration has been working toward for years alongside our partners to update bridges and tunnels along the Northeast Corridor that serve 260 million passenger trips per year. Beyond the Gateway Program, this funding will also contribute to the construction of NJ TRANSIT’s critical Delco Lead resiliency project, in addition to helping make passenger accessibility improvements at Newark Penn Station a reality,” Murphy said.

According to U.S. Transportation Secretary Pete Buttigieg, “We are finally delivering the generational investments in passenger rail that Americans have wanted for years, including modernizing the busiest rail corridor in the country. These investments will make our busiest passenger railroad safer, faster, and more reliable, which means fewer delays and shorter commutes for the 800,000 passengers who rely on the Northeast Corridor every day.”

Vital to the American economy, the area the NEC spans accounts for 24 million jobs and 20% of the national GDP, while serving 800,000 intercity passengers riders, commuters, and travelers daily. Despite its national importance, the corridor hasn’t seen major federal investment in generations. Thanks to President Biden’s Bipartisan Infrastructure Law and Investing in America Agenda, investments are now being made in more communities than ever before along the corridor.

Here is a description of the $3.8 billion Hudson Tunnel Project Systems and Fit Out:

• The project includes final design and construction of the Hudson River Tunnel project and rehabilitation of the existing 113-year-old North River tunnels. Construction will include installation of track, signals, traction power, ventilation, fire and life safety systems, and other necessary systems work in the new Tunnel. As matching funds, the Gateway Development Commission (GDC) will provide approximately $950 million as part of a financing package through DOT’s Railroad Rehabilitation and Improvement Financing (RRIF) loan program. For the larger Hudson Tunnel Project: FRA has committed an additional $912 million through Amtrak; FTA has determined a contribution of up to $6.88 billion under their Capital Investment Grants program; USDOT has provided $25 million through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program; and GDC will provide additional RRIF funds as part of the financing package.

Other New Jersey projects include:

• Sawtooth Bridges Replacement Project Enabling Components (Up to $133,327,610) in Kearny
• Gateway Program: Dock Bridge Rehabilitation (Up to $300,184,000) between Newark & Harrison
• The Delco Lead (Up to $180,902,767) in North Brunswick
• Newark Penn Station Vertical Circulation Improvements (Up to $59,200,000)

The historic federal infrastructure law invests heavily in passenger rail, notably through the Federal-State Partnership for Intercity Passenger Rail Program, and the dozens of funded projects will create over 100,000 jobs as well as new opportunities for small businesses. In total, the program will make available $36 billion over the next five years, with $24 billion for projects on the NEC and $12 billion for intercity passenger rail projects and high-speed rail projects nationwide. Nationwide grants through the Fed-State program will be announced in the coming months, building on previous rail investment announced earlier this year, including the new Rail Crossing Elimination (RCE) grants and the Consolidated Rail Infrastructure Safety Improvement (CRISI) grants.

For the full list of Fiscal Year 2022-2023 Fed-State NEC project selections, please click here.

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