New York, New Jersey reach funding pact for new rail tunnel
NEWARK, N.J. (AP) — New York and New Jersey have agreed on how to pay their share of an estimated $13 billion project to build a new rail tunnel under the Hudson River.
New Jersey plans to raise $1.9 billion by hiking rail fares by about 90 cents per trip starting in 2020, with bigger increases planned for 2028 and 2038.
New York plans to commit $1.75 billion to be financed over 35 years through a federal rail loan program.
President Barack Obama committed to pay half of the project’s cost, but his successor, President Donald Trump, hasn’t said whether that commitment stands.
The project is seen as essential to alleviating delays on the Boston-to-Washington corridor.
Amtrak says the existing tunnel could fail in 10 to 15 years due to damage from Superstorm Sandy.