A mid-April court hearing on the release of funding for the Gateway Hudson rail tunnel project reminds us of the harsh winter just endured by transit commuters between New Jersey and Manhattan. This past winter was fraught with track failures, long-planned work on a new bridge over the Hackensack River, and weeks of deep freeze and record snowfalls.
On top of all this, construction on the Gateway project was shut down in February due to a federal funding freeze that took weeks to resolve. More than 1,000 skilled tradespeople building two new rail tracks under the Hudson River closed up shop and went home, wondering if they would ever be recalled.
The new tracks would allow Amtrak to close the existing Northeast Corridor tubes — which were built in 1910 — and make urgent repairs. These tubes are the cause of the frequent delays in the 200,000 daily trips made under the Hudson. Once new tunnels are completed and the old tunnel repaired, trans-Hudson capacity has the potential to double. Delays will decline dramatically, and housing pressure in New York will ease as renters and homebuyers have more options within commuting distance.
The overdue funds were eventually restored, but the dispute highlights the challenges faced as funding remains precarious and politics threatens long-term investments. The costs of delays are paid by the riding public, as well as the thousands of construction workers whose livelihoods depend on these projects. This is why we need to keep moving ahead — on time and on budget — with upcoming federal funding disbursements.
President Trump agrees with this, although — like many of us — he is wary of runaway costs on infrastructure projects. He announced on social media that he would not abide by any overruns on the Gateway project. Nor should he. Thus far, the project has been within cost estimates and on schedule.
While the U.S. has struggled to deliver major infrastructure projects — whether high-speed rail in California or offshore wind in the Atlantic Ocean — New York has begun delivering bold, ambitious projects on schedule and within budget.
The Tappan Zee Bridge was replaced in 2018 for $2 billion less than the original estimates. Moynihan Train Hall opened on time in 2021. And LaGuardia Airport was completely overhauled in 2022 by the Port Authority, using a cutting-edge public-private partnership. Each of these projects has exceeded projections for usage, driving further economic growth.
One key lesson from these successful projects: delays are costly. Delaying the Gateway Program by six months, for example, would add as much as $1.34 billion in costs. Conversely, we estimate that doubling capacity under the Hudson River will create an average of 46,000 jobs per year through 2060 and generate $445 billion in economic output.
Without consistent infusion of federal funds, though, contracts and bids might need to be re-issued, leading to years of delays. Tens of thousands of workers might be out of jobs. As a developer, the president understands this. Construction companies advance millions bidding on large-scale projects, and these companies — and their lenders — need to know they will be paid back without delay.
With its suite of 11 mega-projects, Gateway is the largest and most important infrastructure program in the United States. Its completion will be an enduring legacy for the nation that will improve our economy and quality of life well into the next century.
Wright is president and CEO of the Regional Plan Association (RPA). Milstein is chair of the RPA’s Committee on Critical Infrastructure.