(Bloomberg) -- Planners said they cut $1.4 billion from the cost of the proposed New York City rail tunnel, a step to appeal to President Donald Trump's administration.
The project, newly priced at $11.3 billion, still relies on $10 billion in U.S. grants and loans, according to a revised financial plan submitted to the Federal Transit Administration by the project's sponsor, the Port Authority of New York and New Jersey.
Trump officials, evaluating an earlier pitch, said the states shouldn't rely on loans, and multibillion-dollar grants would starve projects elsewhere in the U.S. The new plan includes a $1.3 billion contribution from Amtrak, almost double its prior commitment. Planners anticipate breaking ground in 2021 if key federal approvals are awarded.
Construction, including rehabilitation of the crumbling existing Hudson River tunnel, would cost 11% less than planned earlier, in part because of early design work, according to Frank Sacr, interim executive director of the Gateway Program Development Corp.
To contact the reporter on this story: Elise Young in Trenton at eyoung30@bloomberg.net
To contact the editors responsible for this story: Flynn McRoberts at fmcroberts1@bloomberg.net, Dan Reichl, Josh Friedman
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