Construction of a new rail tunnel

The administration of U.S. President Joe Biden decided to allocate $292 million for the construction of a rail tunnel under the Hudson River between New York and New Jersey. This is stated in a statement issued Tuesday by the White House.

"U.S. President Joe Biden will announce that the administration has allocated nearly $1.2 billion for nine projects across the country, including more than $292 million to complete the critical initial phase of work on the rail tunnel under the Hudson River. These infrastructure investments will create good-paying jobs, strengthen the economy and supply chains, increase mobility and make transportation systems safer for all," the statement said.

The White House notes that this allocation was preceded by a number of other infrastructure project funding announcements, including more than $2 billion "to upgrade some of the most economically important bridges for the United States," such as the Golden Gate Bridge in California and the Brent Spence Bridge between Kentucky and Ohio.

For some in the Biden administration, the Hudson Tunnel project demonstrates what could be lost if spending cuts are enacted. According to the White House, the construction is projected to create a total of 72,000 jobs.

The project will renovate the 1910 tunnel, which already carries about 200,000 weekday passengers under the Hudson River between New Jersey and Manhattan. The upgrades, long delayed after decades of government underfunding of the infrastructure.

The grant will also be used to complete the concrete casing for an additional rail tunnel under the river, preserving right of way for a possible tunnel. The project is expected to cost a total of $16 billion and help alleviate problems for commuters on New Jersey and Amtrak trains through New York City.

In 2022, Biden announced a plan to develop infrastructure in the United States, which implies the repair of about 104 thousand kilometers of roads and 1.5 thousand bridges. According to the president, his proposed package of over $1 trillion should allow the U.S. to overtake China in infrastructure investment for the first time in 20 years.