Daily Archives: January 2, 2018

DOT Threatens Hudson River Tunnel

The Hudson River tunnel project, which was started in 2009, then killed, then revived, now has been killed again by the Trump Administration, at least according to an article in Crain’s business journal. It would be more accurate to say that Trump’s Department of Transportation has challenged the project’s financing plan.

Originally projected to cost $2.5 billion, the project to replace tunnels used by Amtrak’s Northeast Corridor trains was killed by New Jersey Governor Christie when it inflated to $8.7 billion. The resurrected project is projected to cost $20.0 billion yet now has Christie’s support, probably because he doesn’t expect New Jersey to have to pay for much, if any, of it.

Most federally supported transit projects are funded on a 50/50 plan, where the federal government pays up to 50 percent of the cost of the project while state and local government pay the rest. The states of New York and New Jersey had agreed to a 50/50 plan for the Gateway project (as the Hudson River tunnel project is now known): 50 percent paid for with federal grants and 50 percent with federal loans. Continue reading