With gas prices on the rise and the population growth rapidly increasing every year, major cities are having to prioritize innovations in public transportation. One historic project that recently received a go-ahead will soon take travelers underneath the Hudson River– the Hudson Tunnel Project.

On March 28, the U.S. Department of Transportation’s proposed budget called to allocate $100 million in 2023 to construct a new railway tunnel and reconstruct an existing one between New York City and New Jersey. The Hudson Tunnel Project aims to relieve New Jersey commuters by building a new Northeast Corridor rail tunnel while rehabilitating the existing tunnel that was damaged by Hurricane Sandy. The project is also part of the Gateway Program, where Amtrack, Port Authority of New York and New Jersey, New Jersey Transit, and the Gateway Development Commission are partnering to work on the all-inclusive project. Overall, construction is expected to be completed in 2035 and cost a total of $12.3 billion if not derailed by inflation, energy, and supply chain issues.

Once completed, the addition to the Northeast Corridor rail tunnel may be effective in reducing the congestion and delays of travelers. And while 2035 is over a decade away, it is a welcome solution to the destruction of the existing 110-year-old tunnel. The benefits of the Hudson Tunnel Project also have the potential to be abundant. For one thing, it mitigates the likelihood of a shutdown of the existing North River Tunnel, which would cost $16 billion. Additionally, the project could create over 17,000 jobs and is expected to generate over $19 billion in economic benefits.

The environment also stands to benefit from the Hudson Tunnel Project as well as future innovations in public transit. While the new additions to the Northeast Corridor are not likely to singlehandedly end global warming, they will lower carbon emissions by transporting more passengers.

The Hudson Tunnel Project is one of the standouts of Biden’s Bipartisan Infrastructure Law. It is also one of the next steps to put the U.S. on par with other countries in public transportation. While the future of America’s public transportation system has a ways to go, the Hudson Tunnel Project indicates we are on the right track(s).



Written by Rachel Spencer, Communications Intern


The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization. An innovative think tank, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, energy, infrastructure, innovation, technology, and transportation.