Governor Kathy Hochul of New York and Governor Phil Murphy of New Jersey signed the Phase One Memorandum of Understanding (MOU) required by the Gateway Development Commission Act along with Port Authority of New York and New Jersey Executive Director Rick Cotton. The MOU outlines sources, uses, and timing of funding on behalf of New Jersey and New York for Phase One Gateway Projects: Portal North Bridge and the Hudson Tunnel Project. Signing this MOU advances the Gateway Program to its next phase, which will detail the parties’ responsibilities with respect to delivery of the Hudson Tunnel Project and move forward in the federal project review.
Phase One of the Gateway Program is funded by a combination of federal and local sources. On behalf of the states, PANYNJ’s total commitment for Phase One is $2.7 billion. For Portal North Bridge, federal funding sources total approximately 60 percent of the total cost, leaving the States’ PNB Commitment of $772.4 million to be split by New Jersey and New York at $386.2 million per state. For the rest of the Hudson Tunnel Project, the States will similarly split the local share 50-50. The States intend to work with their partners and federal entities to aggressively pursue greater federal sources of funding for the Gateway Program through the Infrastructure Investment and Jobs Act. Before the federal government could agree to pay half or more of the cost, the two states had to come to an understanding about splitting the local share.
“The Gateway Hudson Tunnel Project is vital to the Northeast corridor, and today’s announcement is a critical step forward in turning this vision into reality,” Governor Hochul said.”Today marks a pivotal milestone toward the completion of the most significant transportation project not just in New Jersey, but in the entire United States,” said Governor Murphy.