New York Rail Tunnel Project Again Gets Low Grade From Feds

March 15, 2019 - 6:13 pm

NEWARK, N.J. (AP) — A $13 billion project to build a new rail tunnel between New York and New Jersey has received another rating from federal authorities that makes it ineligible for critical grant funding.

The Federal Transit Administration released its ratings Friday.

It gave the Hudson tunnel project a medium-low rating, the same rating it gave several months ago.

The federal Department of Transportation has clashed with members of both states' congressional delegations over how much the states are paying.

New Jersey and New York plan to use long-term federal loans to pay for 50 percent of the project, with the federal government paying for the other half with grants.

But the Department of Transportation has said that's asking for too much.

New Jersey Democratic Sen. Bob Menendez called Friday's rating “ludicrous.”