NJT is putting their money up, hoping the Feds do the same.
New Jersey to Borrow More to Help Pay for Portal Bridge Replacement
Here is a not so brief fair use quote. Hopefully, the mods will trim as necessary:
Earlier this year, Transportation Secretary Elaine Chao challenged New York and New Jersey to put more “skin in the game” to pay for the Gateway program, which includes the replacement of the Portal Bridge at Kearny, N.J.
A senior official in the administration of New Jersey Gov. Phil Murphy said Wednesday: “They asked us for skin in the game. We are showing them we’ve got skin in the game.”
Until this week, New York and New Jersey had jointly committed more than $600 million toward the $1.7 billion bridge project. But federal transportation officials viewed the commitment with skepticism.
The Trump administration saw the plan for the Port Authority of New York and New Jersey to take out a federal loan of almost $300 million as not counting toward local funding for the project.
Although New Jersey had also committed to a bond issuance of more than $300 million for the bridge, no formal authorization for such an issuance had been given.
That changed this week when New Jersey Economic Development Authority approved the sale of $600 million in bonds to pay for the bridge. NJ Transit will repay the money in the form of rental payments funded by New Jersey’s Transportation Trust Fund.
The Port Authority is expected to shift its commitment to cover almost $300 million in federal loans to other projects that are part of Gateway, pending approval of the agency’s board.
The new Portal Bridge project is fully designed and has all of the necessary regulatory approvals. But it is in limbo after the Trump administration held up federal funding while suggesting that New York and New Jersey should contribute more to the project.