Hudson Tunnel States Take Steps for Federal Construction Grants

The North River Tunnel under the Hudson River.

Photographer: Victor J. Blue/Bloomberg

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New York and New Jersey are taking steps to overcome a barrier to federal funding for a Hudson rail tunnel with legislation for a bi-state commission to handle its finances.

President Donald Trump’s administration has pointed out that the Gateway Development Corp., an early overseer of the roughly $13 billion proposed tunnel, lacks the authority to accept construction grants. Bills to create a more powerful entity were cleared by the New York Assembly’s corporations, authorities and commissions committee on June 6 and referred to New Jersey’s Senate transportation committee on Monday.