Why the Hudson River tunnel project is so economically important
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Construction on the project last October in New York City; Photo: Spencer Platt/Getty Images
Construction on the largest infrastructure project in the country, a rail tunnel connecting New York and New Jersey, is set to stop at 5 pm Friday because the Trump administration cut off funding.
Why it matters: Thousands of jobs are on the line, as is the long-term economic health of the New York metro area and the Northeast Corridor — critically important to the nation's overall economic growth.
- The stability of aging rail infrastructure, long a pain point for the region's commuters, is also at stake.
Where it stands: President Trump has reportedly offered to restart funding for the Hudson River Tunnel, also called the Gateway Project, if both New York's Penn Station and Washington's Dulles Airport were renamed after him.
- The White House initially suspended the approximately $16 billion in funds last year over concerns about diversity, equity and inclusion.
Zoom in: The Gateway program comprises a series of projects along 10 miles of rail between Newark and New York Penn Station — a passage that carries more than 200,000 passengers a day over only two tracks.
- The aging infrastructure dates back to the early and mid-20th century and often leads to frustrating delays.
By the numbers: If construction stops Friday, it will put 1,000 people immediately out of work, per a statement from the Gateway Development Commission, which oversees the construction.
- An extended pause would put about 11,000 construction jobs at risk — plus another 95,000 jobs and nearly $20 billion in economic activity from what that construction is expected to generate, the group said.
The other side: Axios did not immediately hear back from the White House or Department of Transportation on whether or when funding would resume.
The big picture: Once completed, rail service in the region will expand, become more reliable and more frequent.
- The project is projected to drive $230 billion in economic activity for the region — and another $170 billion for the national economy over 15 years.
- Benefits include more train service along established routes, as well as to new areas, which would create more jobs and more demand for businesses, real estate and other of dollar-generating activity.
What to watch: The Gateway group filed suit against the White House seeking to release the funds.
