Archive for Gateway Tunnel
Somewhat oddly, because why now and why not earlier, momentum on a new trans-Hudson tunnel continues to build. Construction may be a few years away (even though low interest rates would make lining up funding now a great idea), but the politics are falling into place. On Monday, we learned that the feds were considering a plan to create a new entity to oversee the project, and today, we find out that’s just exactly what’s going to happen, although the Port Authority will have more of a role in this than originally anticipated.
Additionally, following a September offer from New York Gov. Andrew Cuomo and New Jersey Gov. Chris Christie to have the two states pay 25 percent each and the feds pay 50, the funding scheme may be in place too, and it will look exactly as proposed. It’s not a bad deal for the states as they shift most of the funding to the feds, but it’s still not clear how much this project will cost or when it can begin.
The details of the partnership will be unveiled tomorrow, but Emma Fitzsimmons broke the news in The Times on Wednesday night. She writes:
Federal and state officials announced an agreement on Wednesday to create a corporation within the Port Authority of New York and New Jersey to oversee long-awaited plans to build a new rail tunnel under the Hudson River.
The entity, called the Gateway Development Corporation, will coordinate the project and assemble the billions of dollars needed to pay for it. It will be controlled by a four-member board with representatives from New York, New Jersey, Amtrak and the federal Transportation Department.
As part of the agreement, the federal government and Amtrak said they would be responsible for financing half of the project, which could cost as much as $20 billion. Govs. Chris Christie of New Jersey, a Republican, and Andrew M. Cuomo of New York, a Democrat, had pushed for the cost-splitting and said the two states would line up the money for the other half.
The announcement, from the governors and Senators Chuck Schumer of New York and Cory A. Booker of New Jersey, both Democrats, signaled the most significant progress yet on an effort federal officials have called one of the most important infrastructure proposals in the country. The century-old rail tunnel used by Amtrak and New Jersey Transit that runs under the river is deteriorating and needs repairs because of damage by Hurricane Sandy.
In comments to The Wall Street Journal, various stakeholders seemed optimistic Gateway would become a reality. “Our shovels are ready. Literally, if you don’t build this tunnel, you would greatly imperil train service,” Cuomo said, apparently channelling Chris Traeger. Amtrak Chair Anthony Coscia called the move “a real turning point.”
What the Gateway Development Corporation likely does not include is a cost-control mandate. Even if the new corporation can issue bonds, no one has mentioned spending reform or any effort to drive down the project costs. We may well get our tunnel yet, but at what cost?
As momentum grows to move forward on the Gateway Tunnel, an interesting and obvious turf battle is taking shape. According to a story published late on Friday, our region’s politician are working out a deal for a new trans-Hudson tunnel that may lead the much-maligned Port Authority to be a participant rather than a leader on this project. Considering how much of what the PA has touched lately has turned to lead, it’s a plus to keep their hands off this project as much as possible, and the move seems to indicate a certain lack of trust federal officials have in this bi-state entity right now.
Dana Rubinstein and David Giambusso broke the story on Politco New York. The two write:
Multiple sources have told POLITICO New York the two states, the Port Authority of New York and New Jersey and federal officials are now hammering out a framework for a new entity dedicated solely to building the project. Negotiations are continuing, but one source said the entity’s board would likely be populated by two Port Authority representatives, one representative from Amtrak and another from the federal transportation department. The structure of the board is still in flux, the source said…
According to several sources knowledgeable about the state of discussions, the various parties are now negotiating the terms of a compromise. A final proposed framework is expected to be agreed upon soon, according to one of those sources. Neither governor responded to a request for comment. [New York Senator Chuck] Schumer’s spokesman, Angelo Roefaro, would only say that since his speech in August, the senator has been meeting with stakeholders “to make the case for a separate authority.”
While the Port Authority’s reputation is a factor in this debate, another driving factor motivating Schumer involves political control. The New York Senator has long stated his preference for a new entity that better access federal funding sources while both New York and New Jersey governors have pushed the Port Authority as the entity responsible for building out the tunnel. As we’ve seen over the years, Andrew Cuomo and Chris Christie have turned the Port Authority into fiefdoms of patronage, and Schumer knows maintaining federal control over this project involves removing decision-making capabilities from the states. As we learned during the ARC debacle, allowing one party to unilaterally cancel a project harms the entire region, and a new entity can dissipate power while ensuring equality in funding obligations.
What I hope a new agency can do as well is rein in costs. It’s not quite clear how much the bill will be for the Gateway Tunnel. Recent estimates have ranged as high as $20 billion, but that figure could include additional work prepping the area around New York City for a high-speed rail line. It’s also an exceedingly high figure and one that could derail the tunnel before work begins. As with the MTA’s projects, we need to find a way to control costs on a new Amtrak tunnel that enables us to build competitively. Planners should first identify how much this project should cost based on similar tunneling efforts throughout the world and then work backwards to understand why New York’s costs are so inflated. Then we can build.
So the discussions and the political negotiations are moving forward while money remains an unknown. For now, that’s OK, but if Schumer and the feds reach a deal with the Port Authority and its two bosses, the dollars will take centerstage. Perhaps we shouldn’t wait much longer to begin that planning effort. As we’ve seen with the Second Ave. Subway, waiting accomplishes nothing, and the region shouldn’t be waiting around much longer for more trans-Hudson rail capabilities. It can’t really afford to.
As something of a follow-up to Monday’s post on the status of the trans-Hudson tunnels, take a gander at this video the Regional Plan Associate has produced. As part of its effort to drive the conversation regarding both rail capacity and a new Penn Station, the RPA has created an easy-to-understand video highlighting why they think we need to invest sooner rather than later in the infrastructure necessary to overcome capacity constraints and stability issues regarding Amtrak’s tunnel. We can debate what should happen to Penn Station (and how much it should cost) for hours, but the video helps put into image the countless words that have been written on the tunnels.
Amtrak was briefly in the news over the weekend when Chris Christie made a stir in the Quiet Car. Rushing for an Acela from D.C. to the Garden State, the New Jersey Governor either didn’t realize he was in the Quiet Car or didn’t care. One story has him huffing his way out of the Quiet Car after complaints of loud phone calls while another has him apologetically leaving once he realized his mistake. He’s no stranger to Amtrak, and I’m inclined to believe he simply didn’t notice at first that he was in the Quiet Car. The way the story went viral on Sunday though is indicative of the way the Quiet Car has been a success story. If only the rest of Amtrak were this successful.
Meanwhile, the long-range plans for Amtrak’s Hudson River tubes were in the news last week as Crain’s New York took a look at ways the region can increase trans-Hudson capacity before Gateway comes to fruition. Noting that the current condition of the North River Tunnels is “a daily threat to transport and commerce,” Veronica Vanterpool, head of the Tri-State Transportation Campaign, argued that we could and should act now. Generally, she argued for ferries (…) and prioritizing buses through current crossings. I’ll come back to her ideas later this week as they’re worth revisiting on their own.
Let’s look though at the argument surrounding the condition of the North River Tunnels. As now, it’s not exactly clear what the risks are to Amtrak’s tunnels. Seemingly in order to spur political action, the company has warned of potential defects and urged timely action. They’ve been pursuing this line of argument since Hurricane Sandy swept through the 100-year-old North River Tunnels, and in doing so, they’ve obscured the debate to their benefit.
There are essentially three different but intertwined arguments. The first is that trans-Hudson capacity is a problem because it limits the number of people who can enter into and pass through Manhattan in a timely fashion. This is a hinderance to rail expansion and a high-speed rail network running along the Northeast Corridor. The second is that a lack of redundancy makes the Hudson River chokepoint particularly vulnerable to disruptions both now and in the future. The third is that the aging infrastructure needs to be updated but can’t if there isn’t enough redundancy to weather the traffic. By conflating the three, Amtrak can argue that it needs more tunnels because the old ones are in danger of damage, and the system doesn’t have the redundancy required to pick up the load.
That’s all well and good (and perhaps, in a sense, true), but if Amtrak is truly worried that its tunnel is going to collapse, why is it running trains through it on a daily basis? Is this some sort of Russian roulette with rail passengers or a ploy? If the tunnels are going to fail in the future, the argument for investment can focus on needs; if the tunnels are at risk of failing tomorrow, then the time to act was yesterday. One way or another, Amtrak should be clear on these risks. Support for a multi-billion-dollar tunnel hinges on it.
Momentum continues to build for some sort of action on a new trans-Hudson tunnel. It’s not yet clear what proposal will emerge from talks, how much this monstrosity will cost or who will pay for it (though Amtrak is considering a surcharge on their tickets to generate some revenue). Meanwhile, early planning is moving forward, and The Times checks in on the effort.
Emma Fitzsimmon’s article has a few key takeaways, some of which are discouraging and some of which lead to more questions that must be answered. First is the news that both New Jersey Transit and Amtrak will be involved in the development and engineering work for this project. With Port Authority on board as well, I worry that too many cooks are stirring the soup. As we’ve seen with East Side Access, lack of cross-agency cooperation has slowed the project down to a standstill, and we shouldn’t repeat the same mistakes on the other side of Manhattan.
Second, Fitzsimmons reports that, despite the fact that planning for ARC involved many similar studies, all involved expect the environmental review process to take 2-3 years. This is a major barrier to transit progress in the U.S. today. To build a new rail tunnel, the project’s supporters will have to study environmental impact, including air quality concerns. As a point of comparison, it took the MTA nearly five years to produce a final environmental impact statement for the current iteration of the Second Ave. Subway. Considering the need and similar scope of recent projects, this is just an inexcusably slow process badly in need of reform.
With this background on hand, Fitzsimmons raises a series of key questions:
How would the states pay for their share when leaders are already struggling to fund existing infrastructure plans? Could Congress, already wracked by leadership questions, be persuaded to provide significant federal funding? And would the Port Authority, shadowed by scandal and a continuing federal investigation, be the best agency to oversee one of the biggest construction projects in the country?
From where I sit, the Port Authority is never the best agency to oversee construction projects. Of late, their best and perhaps only successful projects have been massively overbuilt and insanely expensive buildings that have little transportation value. The Port Authority board recently admitted that it has no idea how to rebuild its Manhattan bus terminal, as one New Jersey-based commissioner said, “We are so out of our league, we don’t know what the hell we’re doing.” Their $4 billion mall/transportation hub at the World Trade Center shows no signs of wrapping construction even as the group promised a 2015 opening date, and that project is hardly a bellwether for future Port Authority transportation success. And the agency is essentially a pit of patronage, making the MTA look fully competent and efficient.
So that’s where things currently sit, and that seat is very tenuous. We need a trans-Hudson tunnel, but we need one that’s well-planned and efficiently built. The years will tick by, through new administrations in the White House and Trenton and Albany, and the money may or may not flow. Hopefully, forward progress continues, but these questions need answering now, not in three or five or ten years.
While Gov. Andrew Cuomo and Mayor Bill de Blasio are fighting over everything transit these days as part of their Albany-City Hall feud, Cuomo has found a transit ally across the river in an unlikely source. On Tuesday, he and Gov. Chris Christie told the feds they were willing to pay for part of a new trans-Hudson tunnel. They didn’t quite endorse Amtrak’s Gateway Tunnel project, and this may become a key point soon. But for two governors who haven’t show much willingness to support any transit project, this latest development is one we should welcome with open arms even if we need to maintain a healthy bit of skepticism about it.
In discussion his new-found support a few hours after sending a letter co-signed with Christie to the feds, Cuomo uttered one of the better quotes of this whole debate. “It is inarguable that the tunnel has to be built,” he said. “There’s only one tunnel now. It’s leaking. There have been significant delays because trains get stuck in the tunnel. It has to be done today. Everyone says that. Senators, congressmen, short people, tall people. Everyone says it has to be built.”
So as short people and tall people finally find a reason to come together, Christie and Cuomo have too. Their letter [pdf] is a thing of beauty. It’s the most conditional of condition support with so many conditions attached that their plan has essentially done away with Gateway without saying as much. As they say, “the obstacle to progress is funding,” and the two governors are finally ready to deal with what they peg is a $20 billion price tag. (Keep that number in mind and revisit Alon Levy’s August post on costs.)
The two wrote to President Barack Obama:
“We are writing jointly in an attempt to move the stalled project forward by putting a funding proposal on the table that we believe is realistic, appropriate and fair: split the responsibility for the cost. If the federal government will provide grants to pay for half of the cost of the project, the Port Authority, New York and New Jersey will take responsibility for developing a funding plan for the other half, convening all relevant agencies, and utilizing the proposed federal low-interest loan, local funding sources, and other funding strategies necessary to complement the federal grant commitment. This funding framework is comparable to previous structures proposed for a new tunnel.
Due to the nature of this project and to make it a reality on a timely basis, we would also need the federal government to expedite all environmental and planning approvals, as we will on our side. New Jersey will also make available all the planning work accomplished during discussion on the ARC tunnel.
At our direction, the Port Authority is prepared to take the lead in this effort, and is prepared to take Senator Schumer’s suggestion to create a dedicated staff and an entity within the Port Authority to develop such a plan and to get the right agencies and parties involved.”
Do you see this brilliance? Cuomo and Christie have completely twisted Schumer’s intentions to fit their Port Authority fiefdom. New York’s Senator had intentionally eschewed the Port Authority here and had called upon the states to create a new agency. Instead, Christie and Cuomo are willing to add a department to their favorite patronage body to funnel $10 billion in federal funds to their states. It’s the best sleight of hand since Keyser Soze surfaced only to disappear again.
Meanwhile, Cuomo and Christie — and then Cuomo later on in a press gaggle — pointed out numerous times that Amtrak’s ownership of the tunnels was a concern. If you read their entire letter, not once do they mention the Gateway Tunnel as the endpoint of this project. In fact, Amtrak is acknowledged only once, as the owner of the current tunnel, and as far as Cuomo and Christie are concerned, they can keep that tunnel. The northeast wants it tunnel and control of the project. “We assure you,” the two wrote to Obama, “that, if we have the funding, we will get it done. Our shovels are ready!”
Interestingly, as I noted, the word “Gateway” makes no appearances in this letter, but the two acknowledge the need to facilitate a northeast high speed rail corridor. The ARC tunnel, in the form of planning documents, makes an appearance, and I’ve heard some whispers that the New York and New Jersey delegations may wish to revisit ARC’s Alt G plan that saw through-running from Penn Station to Grand Central via dedicated tracks that could be used for high speed rail. It’s not a sure deal, but neither is Gateway as planned and conceived by Amtrak.
So today, short and tall people alike are cheering Christie and Cuomo for coming to the table. It’s barely an accomplishment, but it’s part of the way forward. Can the feds find $10 billion? Can New York and New Jersey find $5 billion each? The feds are ready to deal and say they will “engage with local officials immediately to initiate the work necessary to assign more reliable cost figures and eligibility for federal grants within existing programs.” Cuomo is no longer saying “it’s not my tunnel,” and that light at the end of the proverbial tunnel may be a watt or two stronger right now. There’s a long way, and at least $20 billion, to go, but this is a first step, albeit a very political one.
As the efforts to bring plans for a new trans-Hudson rail tunnel to fruition take off, political infighting is going to be a significant challenge. Just a few days after Gov. Chris Christie met with the feds, New York City Comptroller Scott Stringer engaged in some unprovoked sniping over Christie’s decision to cancel the ARC Tunnel and was appropriately dismissed by Christie’s team. While I’ve been long critical of the ARC move, at this point, Christie is willing to talk, and moving forward on a new tunnel is more important than rehashing the past over the old.
Stringer’s words and Christie’s response are both indicative of the petty bickering that could hamper this project. New York and New Jersey are going to have to present a unified front, and they’re off to a rocky start. But the Stringer incident is small beans compared with the in-fighting that could threaten New York’s side of this project. We’ve also seen Gov. Andrew Cuomo dig in on the funding issues, and now other New York City representatives are chiming in. The latest comes from — where else? — Staten Island. As first reported by Politco New York’s Dana Rubinstein, newly elected Congressman Dan Donovan is skeptical of the tunnel for all the wrong reasons.
In a press release, Donovan “voiced reservations” over the tunnel plans because he feels Staten Island’s priorities should come first:
“Modern, efficient public transportation is obviously critical to our region, and we need to do what we can to relieve congestion.” Congressman Donovan said. “But for decades Staten Island has been ignored and forgotten, and the results are clear: no community in the entire country faces a longer commute than us. It’s disheartening to sit in traffic while listening to news updates about multibillion dollar investments for another underwater rail tunnel from New Jersey to Manhattan. It’s time to get serious about viable transportation alternatives here at home.”
Through the gas tax, Staten Islanders likely pay more per capita into the Mass Transit Account of the Highway Trust Fund than the residents of any other borough. The federal government distributes those transportation dollars to state and local governments, which then prioritize projects for funding. New York City’s OneNYC plan did not identify any near-term transit expansion projects for Staten Island.
Options exist for the borough, such as a light rail on the West Shore and Bus Rapid Transit along the North Shore. Both would bring relief and opportunity by providing what the rest of New York City takes for granted – meaningful access to public transportation. The West Shore light rail alone, which would connect the Hudson-Bergen Light Rail system in New Jersey and stretch 13 miles to Richmond Valley Station, could see 13,000 riders per day. Congressman Donovan concluded, “I understand the importance of maintaining the regional infrastructure on which millions of people rely, and I will work toward a long-term transportation bill to provide funding certainty to regional planners. Still, it’s about time Staten Island got the attention it deserves. State and local planners have to prioritize this borough’s spiraling transportation challenges.”
On the one hand I understand Donovan’s call. He’s one of the few Staten Island voices actually arguing for transit for the borough, and his references to an expansion of the Hudson-Bergen Light Rail or the West Shore line are the right ones. On the other hand, he shouldn’t be couching this pro-transit argument in an anti-Hudson tunnel press release. First, there’s no reason we can’t have both, and second, the scale just isn’t the same. The trans-Hudson tunnel is a vital connection for the region that serves nearly 20 times as many people as an HBLR expansion might.
Now, I can forgive Donovan here; he’s a bit new to this game. But in the back of my mind, I keep thinking about how hard it is to take calls from Staten Island for better transit seriously. To rehash the near past, certain S.I. politicians have complained about nearly every transit improvements. State Senator Andrew Lanza railed against bus lanes and then had the audacity to call for more Staten Island transit. He’s also spearheaded a lengthy opposition to flashing lights on SBS vehicles, and he’s not the only State Islander similarly complaining. The borough wants more transit but doesn’t seem to want the density that comes with it.
Still, as the Staten Island Economic Development Corporation fights for light rail, Donovan should push the MTA to include funding for a study in its capital program proposals. But it doesn’t have to compete against trans-Hudson tunnels. That’s just counterproductive for all of New York.
It’s hard to say where all of these meetings, editorials and statements about the need for a new trans-Hudson rail tunnel eventually lead to. For a few weeks — spurred on by an unfortunate assist from Hurricane Sandy and necessarily relentless coverage of delays caused by problems in Amtrak’s North River Tunnels — journalists, editorial boards, federal officials, transit advocates, and, yes, even elected representatives have been pushing forward on finding a way to build new tunnels. At $14-$20 billion depending upon the scope of the project, the ask is so far large and largely unjustified, but as the political dance continues, we have reason to remain cautiously optimistic that forces are aligning to do something. What that something is remains to be seen.
As we try to make sense of the latest developments, let’s turn to New Jersey where the Garden State politicians met yesterday with U.S. Secretary of Transportation Anthony Foxx. The meeting involved Gov. Chris Christie and Senators Robert Menendez and Cory Booker. Picking up on New York Governor Andrew Cuomo’s cues last week, the team discussed the need not for loans but for federal grants. With Christie on board, an annoying if necessary piece of the puzzle considering he’s one of the reasons why we’re in this mess, the group released a statement:
“Transit across the Hudson River carries an enormous and increasing share of this region’s workforce and economy, and it is clear that something must be done, and done now, as commuters continue to endure serious daily challenges that come with an aging infrastructure.
“We had a substantive and productive meeting today and all of us are committed to working together on a path forward on this critical project. Senator Booker, Senator Menendez, and Governor Christie will work with Secretary Foxx to obtain a substantial Federal grant contribution toward the Hudson River tunnels. In addition to grants, we will also work on other funding and financing options.
“The state of New Jersey supports the Gateway project and is committed to developing a framework with the Federal government to begin it. We all recognize that the only way forward is equitable distribution of funding responsibility and the active participation of all parties. As commuters can attest, we cannot afford further delay.”
It’s not clear what exactly is next for the Garden State pols, but Emma Fitzsimmons’ coverage in The Times notes that, as with any meeting, there were some takeaways. “There was a growing sense of optimism on Tuesday among officials that the project would advance, according to an official who attended the gathering,” she writes. “Another official said that attendees left the meeting with specific assignments or tasks to move the plans forward.”
But as with the tunnel, the politics runs across the Hudson. It may be true, as Cuomo has pushed, that New Jersey stands to lose more if Amtrak’s tubes fail than New York, but that’s a provincial, short-term look. New Yorkers use and need access to the rest of the country via the Hudson River rail tunnels, and New York is going to have to be a willing participant in this Herculean funding mission. Cuomo may be coming around, and he just may be playing the right angle now after a few weeks of recalcitrance.
In a piece I highly recommend you read, Dana Rubinstein explores how the tunnel is New York’s problem whether Cuomo recognizes it or not. The Port Authority, a body some in Washington are intent on pushing aside for the purposes of a new trans-Hudson tunnel, is his problem, and Cuomo will have to cooperate. His statements are all over the place.
Noting that he was “encouraged” by the New Jersey meeting — although not invited to the Garden State summit — Cuomo again called for direct federal contributions. “I think we all recognize the need to make up for years of discussions that did not produce tangible forward progress. I believe deeply in the need for this country and my state and region to invest in new infrastructure to maintain our economic prowess, and I stand ready to expedite any and all state processes to move this project forward. We in New York have invested in major road reconstruction, undertaken the largest single bridge project in the country in decades with the Tappan Zee Bridge and announced the only total reconstruction of a major airport in the country today,” he said. “In the same vein, I strongly support the construction of the new Hudson River tunnel – and a federal grant package that makes the project viable is an essential first step.”
This morning on New York 1 he kinda sorta rolled that back. He claimed his statements are working in that he is “provoking” the bureaucracy to do something, and in that sense, perhaps he’s playing a long game. Additionally, he has questioned the $20 billion price tag — a key line of argument that must be challenged as the project moves forward. What are we spending this money on and why does it cost so much more here than elsewhere? But his constant comparisons to the new Tappan Zee Bridge and LaGuardia Airport projects remain problematic as he hasn’t been transparent on costs or funding. Still, Cuomo pledged that New York would “do its fair share” and again called on the federal government to “step up” with funding.
So that’s a lot of talk. What next? The money. When? Your guess is as good as mine, but the sooner the better.
As Gov. Andrew Cuomo stomps his feet and yells, “It’s not my tunnel,” one of New York’s other politicians has proposed a two-state solution for the trans-Hudson rail tunnel issue that may just provide the faint glimmer of a way forward. However, the divide between New York and New Jersey — let alone the feds — on the issue is nearly as wide as the Hudson River itself, and billions remain to be appropriated before we can start celebrating the launch of a new tunnel.
In speaking at NYU’s Rudin Center yesterday, Schumer called for a new agency that would oversee the project. The Senior Senator from New York feels that this new agency would best be able to tap into sources of funding that Amtrak can’t reach and New York and New Jersey aren’t eligible for under the current set-up. Left unsaid is the belief emanating from Washington that the Port Authority, a pre-existing, two-state, trans-Hudson body, isn’t the right organization to be involved with this project. Considering the corruption at the PA arising out of both Cuomo’s and Christie’s dealings with it and the PA’s inability to handle basic problems, I can’t say I blame anyone for the skepticism.
Jillian Jorgensen was on hand for The Observer, and she offered up this take on Schumer’s speech:
Cooperation is necessary, he said—and to that end he proposed a new partnership, dubbed the Gateway Development Corporation, which would bring together the key players in the project: New York, New Jersey, the Port Authority, the MTA, Amtrak, and the federal government. “Without a single agency directing traffic, Gateway could only move forward one inch at a time, grant-by-grant, undertaken by the separate agencies in a piecemeal fashion. That makes a project such as this, with so many moving parts—and a rigid chronology of construction—extraordinarily difficult,” Mr. Schumer said in his remarks. “Input should come from all parties—everyone should have a seat at the table—but the planning and financing and implementation of Gateway should be driven by one conductor: the development corporation.”
In addition to making it easier to direct the program, Mr. Schumer also argued a development corporation would make it easier to pay for it, by allowing various agencies to tap into funding other agencies involved can’t touch. “Amtrak can’t access federal mass transit funding. The Port Authority and regional Transit Agencies can’t access federal railroad dollars the way Amtrak can,” Mr. Schumer said. “We’ll only get Gateway done by adding up several pieces of financing, with an eye toward getting the maximum amount possible from the federal government.”
…Of course, Mr. Schumer had his ideas on how to pay for the project—and, like the governors, he is looking at the feds to provide most of the cash, in part by using profits from Amtrak’s lucrative Northeast Corridor, which presently is used to prop up far-flung Amtrak routes that don’t generate a profit. “There is a bipartisan move in Congress to allow Amtrak to cordon-off the profits it makes on the Northeast Corridor, and use it for capital investment on that corridor. It keeps the money in the Northeast and reinvests it,” Mr. Schumer said.
Schumer’s proposal is the first concrete one that involves a federal representative acknowledging that the federal government needs to take the political and funding lead on this issue. Whether Schumer can collaborate with Republican majorities in the House and Senate on a northeast infrastructure project remains to be seen, and the fallout among Democrats from his opposition to the Iran deal is also unclear. Still, it’s a start, and as Dana Rubinstein reported, the Senator earned praise for his leadership from transit advocates and White House officials alike.
Even Cuomo had something almost nice to say. “I commend Sen. Schumer for making these tunnels a national priority,” the governor said in a statement. “We both agree that they will require significant federal investment and I look forward to working with him to move this critical project forward.”
Yet, even Schumer couldn’t resist some trans-Hudson sniping, and therein lies the rub. During his speech, he jabbed Christie for the ARC cancellation. “There is a special burden on Governor Christie to lobby his party in Congress to move in our direction on infrastructure funding,” Schumer said. “For one, he cancelled the first effort at fixing the tunnels. But far more importantly, the vast majority of riders who use these tunnels, 80 percent, are New Jersey residents who come into the city via New Jersey Transit.” Christie’s office again repeated the spurious claim that no one would help them with cost overruns (when in fact the feds had offered to help), but that’s neither here nor there. To move forward, the parties are going to have to work together and move beyond finger-pointing for something that happened five years ago.
It’s not entirely clear what the next steps are. New York and New Jersey have to commit to this project with the feds, and the money — Schumer and Amtrak have estimated that the entire Gateway project will be around $25 billion with the tunnel accounting for $14 billion — has to materialize. But as this drama has unfolded lately in press releases, press conferences and policy speeches, there seems to be some movement toward action. I worry about what happens though if nothing happens. Will we engage in five years of finger-pointing before launching this effort anew in 2020? Is Amtrak doomed to wait for a tunnel replacement until the old ones are non-functional? I hope not, but recent history isn’t on our side.
Governor Andrew Cuomo on Monday, for the third day out of four, stressed his view that a trans-Hudson tunnel will not happen without significant federal support and again stated his opposition to even a meeting on the issue. Speaking to reporters after a day of Amtrak testimony in front of the New Jersey Senate, Cuomo continued his game of high-stakes chicken.
“It’s not my tunnel,” he said, showing more of his cards than he probably intended. “Why don’t you pay for it? It’s not my tunnel. It is an Amtrak tunnel that is used by Amtrak and by New Jersey Transit.”
The New New York Bridge, on the other hand, is his bridge, and Cuomo grew defensive when challenged on this project — one inarguably far less important to New York City than trans-Hudson rail capacity. Here’s how Dana Rubinstein of the newly-rebranded Politico New York reported on the exchange:
“There’s no moral, legal or ethical reason why the state should be looked at to fund it, or the states plural, New Jersey and New York,” said Cuomo on Monday. “The federal government said they would provide funding and it turns out they would provide a loan and no more than a loan. My problem is not the loan. My problem is repaying the loan.”
A reporter asked him why he was willing to take on debt for a new Tappan Zee Bridge. “Because the Tappan Zee Bridge is a state bridge,” he said.
I said my piece on Cuomo’s misguided opposition to supporting a trans-Hudson rail tunnel in yesterday’s post, and he’s just making it worse. On the need to draw out federal dollars, Cuomo has a very valid point, but his rhetoric is parochial nonsense that hurts New York far more than it helps. Meanwhile, Gov. Chris Christie, he of the canceled ARC Tunnel, at least committed to meet with the feds later this month because Senator Cory Booker requested it. Cuomo can’t even seem to bridge that divide, and I don’t see how this is helping us — the New Yorkers who are his constituents.
Meanwhile, Amtrak has suggested a way forward. In a Senate hearing during which the rail agency presented a rather dire picture of future operations without substantial capital support and a new tunnel, agency officials proposed a funding solution involving the feds. It may be enough to silence Cuomo and get him to the table, but it would also require Capitol Hill to pick up over $11 billion of what is today expected to be a $14 billion project. Larry Higgs had more:
Amtrak officials told a state Senate panel that it needs at least $1 billion a year to bring its system into a state of good repair and that the canceled ARC tunnel would have provided some help if a Hudson River tunnel were forced out of service for repair.
Stephen Gardner, Amtrak Executive Vice President and Chief of NEC Business Development, said it would take a recurring investment of at least $4 billion a year to replace aging infrastructure, including the 105-year-old Hudson River tunnels and the century old Portal Bridge…
Senator Robert Gordon, D-Bergen, who called the hearing said he’s hoping it will convince Christie and federal lawmakers of the seriousness of the problem. Gordon said he was heartened by Gardner’s testimony that the federal government could put up 80 percent of the estimated $14 billion funding for Gateway through a federal railroad reconstruction program that has $35 billion in uncommitted funds and a loan program that could help states fund their share over 35 years.
As The Times noted in its coverage of the hearing, Gardner noted that the proposed funding split was “common for aviation projects…and Amtrak carries three times as many passengers between New York and Washington as all the airlines put together.”
So we have an idea without a sponsor in D.C., a New Jersey governor who is a skeptic but will listen, and a New York governor who will show up only if the feds are, in his words, “serious” about contributing money rather than loans. Meanwhile, one line of argument from Amtrak is guiding this stand-off. As Gardner said yesterday, “The tunnel is under stress. To maintain the current level of service is a challenge.” It’s all a challenge.