Big Project Has Big Economic Impact, New Report Shows

What happened: Five active construction projects currently underway as part of building a new passenger rail tunnel between New York and New Jersey will support more than 20,000 jobs, create $4.5 billion in economic output, and generate $1.7 billion in salaries and benefits, according to a report released March 20 by the Gateway Development Commission. Other economic benefits from the five projects include:

• Ninety-four percent of the $2.2 billion in capital spending from active construction activity is expected to remain within the U.S.
• Every $10 spent on direct labor for the first five contracts supports $17 in wages and benefits nationwide.

Why it matters: Crews broke ground on the nation’s largest-ever rail transportation project in modern history in 2023. With 70 percent federal investment, the new tunnel under the Hudson River will contribute to doubling train capacity, relieving crippling congestion between New York’s Penn Station and Newark, N.J. The existing 115-year-old tunnel causes chronic delays up and down the Northeast Corridor. From 2022 to 2023, trains using the tunnel were delayed two out of every three days.

What’s next: When finished in 2038, the entire effort includes 10 projects creating 95,000 jobs and $19.6 billion in economic output, according to Gateway. During his Jan. 15 confirmation hearing, U.S. Transportation Secretary Sean Duffy said of his commitment to the Gateway Project: “I want to look at what funding has gone out, but I’d imagine those good projects that are underway we would continue.” Duffy noted: “The President has given me a directive – to build big projects.”

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