New plan cuts more than $1B off New York rail tunnel cost

NEWARK, N.J. (AP) — New York and New Jersey have submitted a plan that cuts nearly $1.5 billion off the cost of a rail tunnel project under the Hudson River.

The new plan aims to break a funding impasse with the federal government. The U.S. Department of Transportation has given the tunnel and an associated rail bridge project in New Jersey low ratings that have disqualified them from key federal grants. More than 400 trains and roughly 200,000 passengers pass through the tunnel daily. The plan announced Friday envisions design and construction savings that would reduce the new tunnel’s estimated cost from just over $11 billion to $9.5 billion. Repairing the existing century-old tunnel that was damaged in 2012’s Superstorm Sandy would cost about $1.8 billion, or about $200 million more than previous estimates.