U.S. Sen. Charles Schumer, D-N.Y., is proposing the creation of a new nonprofit development corporation that would help jumpstart a stalled Hudson River rail tunnel between New York City and New Jersey.
The New York lawmaker announced on Aug. 11 that uniting transportation agencies together would help arrange financing for Amtrak's Gateway" project that is estimated to cost over $20 billion. He said the entity would help plan and finance the project and called for participation from New York State, New Jersey, New York City, the U.S. Department of Transportation, Amtrak, MTA, New Jersey Transit and the Port Authority of New York and New Jersey.
"For Gateway to have a chance at garnering enough funding, there needs to be an entity that can access various pots of funding from all levels of government and an ability to leverage private capital and issue debt," said Schumer in a speech at New York University's Rudin Center for Transportation. "Each of these forces needs to play an active role in every step of the project."
Schumer's proposal was released two weeks after U.S. Transportation Secretary Anthony Foxx sent a letter urging the New York and New Jersey governors prioritize the tunnel project. Port Authority Chairman John Degnan responded with a letter to Foxx saying more federal backing is needed for the project to proceed.
New Jersey Democratic state senators Stephen Sweeney, D-West Deptford, Loretta Weinberg,D-Teaneck, and Bob Gordon, D-Bergenfield, released a statement on Aug. 11 urging New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo to come to a "quick agreement" on funding for the Gateway rail tunnel citing Amtrak's willingness to push for an 80-20 federal funding split. The senators also emphasized that there is the availability of a 35-year, low-cost loan to underwrite the project.
"We have a unique opportunity to create the partnership we need to build the Gateway tunnel, fix the 105-year-old tunnels that were damaged by Superstorm Sandy, and meet the need to double New Jersey Transit rail commuter capacity to New York City," said Sweeney. "Amtrak's push for 80-20 federal funding and the apparent availability of a low-cost, long-term loan should be a game-changer in the Gateway negotiations."
