Governor Chris Christie GovernorAndrew M. Cuomo
State of New Jersey State of New York

September 15, 2015

The Honorable Barack Obama

President ofthe United States ofAmerica
The White House

1600 Avenue NW
Washington, DC 20500

Dear President Obama:

Since the early 19003, the economic engines of New York and New Jersey have spurred
massive investments in our regional transportation network. Our states, and the nation, reap the
benefits of our ability to see past individual state borders and jointly shoulder infrastructure
projects that would otherwise be beyond the reach of individual states. Building regional
infrastructure to accommodate population growth and continued economic expansion is critical
not only to our two states' future, but also to the future economic strength of the nation.

One of the region?s critical major infrastructure projects has, however, languished for
years: a new Hudson River rail tunnel. Acknowledged as a national priority, the rail tunnel
connects New Jersey with New York. More importantly, it is the linchpin for Amtrak?s entire
457 mile-long Northeast Corridor route that is used by 750,000 passengers daily and serves eight
states and the District of Columbia. The existing lOS?year?old rail tunnel has been deteriorating
for years and is now well beyond critical in its need for repair. Superstorm Sandy damage
severely exacerbated the situation.

Knowledgeable state and federal of?cials have all proclaimed the urgent need to replace
the tunnel. The states of New Jersey and New York, the Pelt Authority of New York and New
Jersey, and elected federal of?cials in both states agree we need a new tunnel as soon as
possible. Rail delays due to tunnel damage already occur with unfortunate frequency and we are
years from completing a new tunnel even if we started today.

What's the issue? As usual, the obstacle to progress is funding. The total project price is
approximately $20 billion. For any public works project especially an infrastructure project 
this is an extraordinary amount of money. To put this in context, in New York a new l.aGuardia

 

 

 

Airport will cost approximately $4 billion and a new 'l?appan Zee bridge will cost about $4
billion. In New Jersey, the cost of raising the Bayonne Bridge to accommodate new larger
vessels passing through the rebuilt Panama Canal is about $1.5 billion. The $20 billion scale of
the Hudson rail tunnel project dwarfs all these state infrastructure endeavors combined.

The existing tunnel is an Amtrak owned-and-opcrated tunnel, and the project is simply
impossible without federal grant assistance. Your own Transportation Department has publicly
highlighted the importance of this project, which we appreciate, but to date no viable ?nancing
plan has been developed.

As the Governors of New York and New Jersey, we are both committed to funding our
fair share of the cost and, at our direction, the jointly operated Port Authority of New York and
New Jersey is ready and willing to help. Our states are committed to doing our part and to
contributing funding, personnel and resources. We know how to build a tunnel.

However, the key step to building a new tunnel is a realistic financial plan and
commitment by the federal government. We have both been in touch with our respective
Congressional delegations. In New York, Senator Schumer has stated that he is committed to
making the project a reality and has identi?ed a number of federal sources of funding. In New
Jersey, Senator Becker and Senator Menendez convened a meeting on the project and are
committed to finding federal funding. The congressional delegations of New York and New
Jersey are united in a manner we have rarely seen before.

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 fer
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 ?mding 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.

We believe the public is frustrated by the perception that government effectively
accomplishes too little. In both of our states, we work every day to show government can and
does perform. We both always seek to cut. the bureaucratic red tape, determine the obstacles,
overcome them and move forward.

 

 

 

The key step on the tunnel is to secure federal funding and design a viable ?nancial
package. No other option is feasible. With a viable ?nancial plan, we can ?nally get this critical
project moving. We assure you that, if we have the funding, we will get it done. Our shovels are
ready!

We appeal to you because your direct help made the Tappan Zee Bridge in New York a
reality and expedited federal assistance for New Jersey?s massive Superstorm Sandy recovery
effort. Your support of both these projects set records for accelerating infrastructure projects.

We can do it again. Thank you for your consideration.

Sincerely,

HM

Governor Andrew M. Cuomo