How Trump could block money for Hudson River rail tunnel, imperiling NYC commute

Supporters of a new rail tunnel under the Hudson River claimed victory Thursday, with the pending approval of federal legislation containing funds that could be used to pay for it.

But President Donald Trump, who opposes funding for the project, could still get the last word.

The $1.3 trillion spending package, approved Thursday by the House of Representatives, doesn't even mention the Gateway Project. Trump opposed a $900 million appropriation for the estimated $30 billion project, which includes a new bridge over the Hackensack River and a new two-track tunnel into New York's Penn Station.

"No funding is specifically earmarked for Gateway and no preferential treatment for Gateway is prescribed in the proposal," the U.S. Department of Transportation said Thursday.

Instead, lawmakers from New Jersey and New York increased funding for Amtrak's Northeast Corridor from $328 million to $650 million.

That, plus extra funding for mass transit grant programs that Gateway would be eligible for, totaled about $540 million in funding that could help get construction started on what many consider the most pressing infrastructure project in the country.

Here's the catch

According to Jeff Davis, a senior fellow at the Eno Center for Transportation in Washington, who has analyzed the legislation, Transportation Secretary Elaine Chao has veto power over the extra funds, and she could use it.

"The Secretary can disapprove proposals to spend Amtrak’s grant money," he wrote.

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Chao could also block other grant money from going to the project, Davis noted. The Federal Transit Administration determines a project's eligibility for Capital Investment Grants by assigning it a rating.

"Medium" is the minimum rating required for a project to receive grant money, but the agency currently rates the Hudson River tunnel and Portal Bridge projects as "medium-low."

Further, no construction on the tunnel project can begin until it clears final environmental review. Currently, only the Portal Bridge is ready for construction to start.

Even $540 million is only about half what Amtrak will need in federal funds to complete the Portal Bridge alone, according to its 2019 budget request. New York and New Jersey are counting on the feds to provide an additional $6.2 billion in grant money to build the Hudson River tunnel.

Chao has countered that the states need to step up their local share for the tunnel. The Trump administration doesn't count the roughly $5.5 billion in federal loans the states are seeking as local money.

"DOT has the responsibility to review all federal grants to Amtrak, and Amtrak’s board of directors is appointed by the president," the department said Thursday.

Members of the region's congressional delegation reacted to the spending bill with tempered optimism.

"I have concerns that the administration may try again to block Gateway," said Rep. Bill Pascrell, D-Paterson. "The delegation will have to keep the pressure on."

"Although we still face headwinds, this federal support is a constructive first step toward solving the most pressing infrastructure problem facing our nation," said Rep. Josh Gottheimer, D-Glen Rock.

"While we still have a long road to travel," said Gov. Phil Murphy, "I am pleased to see that the federal omnibus spending bill contains hundreds of millions of dollars in funding that can be used for the Portal Bridge and the Gateway tunnel."

Amtrak's president and CEO, Richard Anderson, was also reserved, not mentioning Gateway by name though it is one of the passenger railroad's biggest priorities.

The increased funding "will allow us to address many important needs along the corridor and we look forward to working closely with the Department of Transportation on investing these funds to advance the most critical projects," he said.