Phase one of the Hudson Tunnel Project is now expected to cost $12.98 billion. Phase one of the Hudson Tunnel Project is now expected to cost $12.98 billion.

NEW YORK CITY—The cost of the critical project to repair the aging North River Tunnel and the construction of a new rail tunnel under the Hudson River that links New York to New Jersey has risen to just under $13 billion as the federal government sends conflicting messages on its funding commitment for the project.

On Thursday, the U.S. Department of Transportation’s Federal Railroad Administration released the Draft Environmental Impact Statement for the Hudson River Tunnel Project that includes the repair of the existing twin-tube North River Tunnel and the construction of a new tunnel. Approximately 200,000 daily Amtrak and New Jersey Transit commuters use the existing North River rail tunnel beneath the Hudson River. The repair of the North River Tunnel and the construction of a new tunnel have been viewed as critical due to the age of the North Tunnel (built in 1910) as well as the damage the tunnel sustained from Hurricane Sandy in October 2012.

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