A federal grant for new rail tunnels linking N.J. and N.Y.C. is approved, but construction will last years [Video]

It’s official. Paperwork was approved Tuesday for a historic $6.8 billion federal grant to build the new Gateway rail tunnels under the Hudson River.

Two major financing agreements were unanimously approved by the Gateway Development Commission Tuesday that put the last two local agreements in place for the $16.04 billion project to build two new rail tunnels between New Jersey and New York City, and to rehabilitate the existing 114-year-old tunnels.

A Full Funding Agreement was approved with the Federal Transit Administration for the $6.88 billion capital investment grant, in addition to approving an initial project budget and schedule. While lawmakers confirmed last month that the grant was being awarded, a formal announcement from the Federal Transit Administration has not been made.