Hudson River Tunnel Shutdown Would Cost Billions, Study Says

MIDTOWN MANHATTAN, NY — A shutdown of the dilapidated Hudson River rail tunnels, which were badly damaged by Superstorm Sandy, could result in an economic catastrophe for the New York City area if the federally-funded Gateway project does not get built, according to a new study from the Regional Plan Association.

The national economy could suffer a $16 billion loss over four years and New York and New Jersey home prices could plummet $22 billion if the Hudson River rail tunnels need to be unexpectedly shut down for repairs, the RPA states in its new report "A Preventable Crisis: The Economic and Human Costs of a Hudson River Rail Tunnel Shutdown."

The Hudson River tunnels, which opened more than 100 years ago, currently service all Amtrak and NJ Transit passenger trains between New Jersey and Penn Station. Should the tunnels need to shut down, 38,000 NJTransit riders would be unable to rely on rail service to commute into the city.

The results would force thousands to move and would create havoc on the roads and other mass transit systems, according to the RPA study. Nearly a quarter-million drivers would face more congestion driving to and from the city and about 170,000 PATH train and bus riders would have their commutes extended.

"This report outlines what a grim new reality will look like. Every day that we aren’t building the Gateway project, we’re one day closer to real economic and social calamity that would be felt across the Tri-State area and beyond," Tom Wright, President of Regional Plan Association, sad in a statement.

"Residents would feel its impact across many facets of their lives. It is a slow-moving, predictable crisis which we have the capacity to prevent. It is time to fully fund the Gateway project now."

Under President Barack Obama, the federal government agreed to split the cost of rebuilding the tunnels with the states of New York and New Jersey. But the Trump administration reneged on that deal, putting the project's future in question. In a letter sent to New York Gov. Andrew Como and former New Jersey Gov. Chris Christie, Trump's Federal Transit Administration said it would back out of a plan to split the costs of the $13 billion project 50/50 between the states and federal government.

In March 2018, U.S. Secretary of Transportation Secretary Elaine Chao revealed that Trump is actively trying to block federal funding for the project.

The current tunnels carry Amtrak and New Jersey Transit trains under the Hudson River. Building a new tunnel and replacing the existing tunnels is expected to cost $12.9 billion, according to an environmental impact statement published in 2017.

In addition to building two new tunnels under the Hudson River, the Gateway project also calls for the repair of the existing Hudson River tunnels and the modernization of the often-troubled Portal Bridge in New Jersey. The construction of a new train hall in the former James A. Farley post office building across the street from Penn Station will allow Amtrak and NJ Transit to run increased train service through the new tunnels.

Trump's administration may have soured on the Gateway project, but the public has not. The Gateway Program Development Corporation randomly surveyed 400 people from the New York, New Jersey and Pennsylvania and found that more than 85 percent think that it's either very or somewhat important that the federal government partner with New York and New Jersey on the project, according to a November poll.

Christie pulled the plug on a similar project called Access to the Region's Core in October 2010 which would have resulted in two new tunnels between New York City and Seacaucus, New Jersey, according to an NJ.com report from 2017. The former governor axed the plan following projections that the budget could increase from $9 to $14 billion, according to the report. Unlike Gateway, the ARC plan was actually able to secure federal funding.