The Trump administration appears to be changing its tune on two key New York infrastructure projects, proposing to Congress $1 billion to fund the Hudson River train tunnel and phase two of the Second Avenue subway. The recommendation, which still must be budgeted and allocated by Congress (as of mid-June), seems to signal that the White House understands the importance of these megaprojects, even as they threaten to withhold federal dollars over congestion pricing.
The Federal Transit Administration (FTA) said in a recent report to Congress it intends to allocate $700 million in the 2026 budget to help pay for the $16-billion project that will link New York and New Jersey with a new rail tunnel, and rehabilitate an existing, century-old tunnel by 2035. The FTA also asked for $307.3 million to finance the MTA’s $6.9-billion project to extend the Second Avenue subway 1.5 miles north of the Upper East Side to Harlem.
The Biden Administration previously agreed to fund the bulk of both projects, so the Trump administration’s proposal appears to be a continuation of what was originally intended. Lisa Daglian, executive director of the Permanent Citizens Advisory Committee to the MTA, called the recommendations a bright spot in an otherwise bleak federal budget outlook for New York. New York state and city officials are bracing for steep federal aid cuts to public services.
Urban planning think tank the Regional Plan Association estimates that the Hudson Tunnel and related projects could generate $445 billion in economic benefits for the region and create and sustain more than 46,000 jobs. The Second Avenue subway extension would provide a new transportation option for workers and businesses in a part of Manhattan that historically lacks subway service.
Source: Crain’s New York Business
