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Bill seeks to break funding impasse on $13B NY-NJ rail tunnel project

February 07, 2019 - 1:21 pm
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TRENTON, N.J. (AP) -- Lawmakers in Trenton have advanced legislation to accelerate progress on a new, $13 billion rail tunnel between New Jersey and New York, in hopes of breaking a funding impasse with the federal government.

The bill advanced out of state senate committee Thursday forms a bistate commission to oversee the project and apply for federal grants and loans. New York lawmakers are considering similar legislation.

Since 2016, a development corporation has overseen the project. But its 501(c)(3) status doesn't qualify it to receive federal grants and loans.

The tunnel project has been stuck in neutral as the two states and the Department of Transportation feud over funding.

The DOT has balked at paying for half the project's cost through grants, saying the states must take on more of the financial burden.