The Hudson River tunnel project will link Manhattan, Hoboken, and Jersey City

A massive upgrade to one of the nation's busiest transit corridors is officially underway. The Hudson Tunnel Project—part of the broader Gateway Program—is moving forward with a $16 billion plan to construct a new rail tunnel beneath the Hudson River while rehabilitating the existing 115-year-old structure that links New York and New Jersey.

Led by the bi-state Gateway Development Commission, the project is backed by federal, New York, and New Jersey agencies to enhance reliability along the Northeast Corridor. The new two-tube tunnel will stretch from North Bergen through Hoboken and Jersey City, connecting directly to Penn Station in Manhattan via nine miles of new track.

In tandem, the current tunnel—damaged by Superstorm Sandy and a persistent source of delays—will be taken offline for full rehabilitation once the new tubes are operational. Construction activity is already underway across both states, with work progressing on the Tonnelle Avenue Bridge and utility relocations in New Jersey, as well as ground stabilization and tunnel box construction at Hudson Yards. Tunnel boring beneath the Palisades is set to begin in 2026.

Beyond critical infrastructure upgrades, the Hudson Tunnel Project is expected to drive nearly $20 billion in regional economic impact and support approximately 95,000 jobs, according to the Gateway Development Commission.

Carrying more than 200,000 daily passengers, the Northeast Corridor plays an outsized role in the U.S. economy. Once complete, the new tunnel will ease congestion, reduce delays, and secure a resilient link between Manhattan and New Jersey for generations.