The $6.8 billion federal grant will fund the construction of a new tunnel at a key crossing under the Hudson River to supplement and replace tunnels damaged in Hurricane Sandy.

The new Gateway tunnel linking Manhattan and New Jersey received a boost this week in the form of federal funding that will contribute roughly $6.88 billion to the project’s estimated $16 billion total, writes Patrick McGeehan in The New York Times.
“The two-tube tunnel is part of Gateway, a massive infrastructure project that is widely considered the most important in the country. The new tunnel would supplement a troublesome pair of single-track tunnels that opened in 1910 and have been steadily deteriorating since Hurricane Sandy flooded them with salt water in 2012.”
Once the new tunnel is operational, Amtrak plans to close the existing tunnels to repair damage from Hurricane Sandy. “If one of the existing tracks had to be closed before the new tunnel is available, train capacity between Penn Station and places west of the Hudson would be cut by 75 percent during rush hours, according to Amtrak,” which would have a major impact on regional mobility and economic activity.
Unlike previous New York-to-New Jersey tunnel projects, the new tunnel has support from officials at all levels of government.
FULL STORY: Hudson Tunnel Project to Get $6.9 Billion in Largest U.S. Transit Grant

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Economic & Planning Systems, Inc.
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research