The project's Contracting Authority, Gateway Program Development Corporation (GDC), has updated the initial financial plan for the Hudson River Rail Tunnel P3 Project. According to this new financial plan, estimated costs of Hudson Tunnel project will increase US$275 million, reaching an overall cost of US$11.6 billion. 

According to GDC, changes were needed in the budget while the project awaits publication of the Final Environmental Impact Statement (FEIS) and issuance of a Record of Decision (ROD).

The updated 2020 financial plan includes a continued local share construction cost commitment of US$5.55 billion from the states of New York, New Jersey and the Port Authority of New York & New Jersey. Amtrak has committed US$1.3 billion to the project.

The Hudson Tunnel Project includes the construction of a new two-track Hudson River rail tunnel from New Jersey to Manhattan that will directly serve Penn Station New York (PSNY), and the rehabilitation of the 106-year old, existing North River Tunnel, which was heavily damaged during Superstorm Sandy in 2012. 

The proposed US$275 increase in the initial planned budet distributes as follows:

• An increase to $9.8 billion from $9.5 billion for the estimated construction cost of the new Hudson River Tunnel and final Hudson Yards Concrete Casing section; and
• An increase to $1.8 billion from $1.77 billion for the estimated rehabilitation cost of the existing North River Tunnel.

The purpose of the Project is: to preserve the current functionality of Amtrak’s NEC service and NJ TRANSIT’s commuter rail service between New Jersey and Penn Station New York (PSNY) by repairing the existing North River Tunnel; and to strengthen the NEC’s resiliency to support reliable rail service by providing redundant capability under the Hudson River for Amtrak and NJ TRANSIT NEC trains. These improvements must be achieved while maintaining uninterrupted commuter and intercity rail service.