Date: Jan. 14, 2025

 

Up to $1.9 Billion from Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan Program Approved by U.S. Department of Transportation for First Phase of Construction

 

Federal Loan Adds to Financing Plan for First Phase of Replacement Project that also Includes Port Authority Capital; Future Phases Will Also Utilize Revenue from Future Commercial Development Rights including New York City PILOT Contributions

 

Approval of Federal Loan Follows Final and Complete Approval from Federal Transit Administration and City of New York to Move Forward on Project to Replace Aging Midtown Bus Terminal with World-Class Facility

Project Will Replace Outdated Legacy Infrastructure with 21st Century Facilities to Improve Commuter Experience, Reduce Bus Congestion on Neighborhood Streets and Create New Publicly Accessible Open Space in Community

 

Project to Include New Facility for Bus Storage and Staging, Charging Capacity to Accommodate Electric Bus Fleets, Community-Friendly Outwardly Facing Retail and New Ramps Between 10th and 11th Avenues

Project Will Create 6,000 Union Construction Jobs; Will Meet Projected 2040-2050 Future Bus Passenger Demand

 

New Project Renderings are Available Here

 

The Port Authority of New York and New Jersey today announced federal approval of a $1.9 billion loan through the U.S. Department of Transportation toward construction of the first phase of the Midtown Bus Terminal replacement project. The Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, to be issued through the Build America Bureau, will support the funding of the first phase of the $10 billion bus terminal replacement project, with construction to begin this year. 

 

“The Midtown Bus Terminal is a fixture in many New Jerseyans’ daily lives and our residents deserve a best-in-class facility,” said New Jersey Gov. Phil Murphy. “Securing this critical funding brings us a step closer to a new and modernized bus terminal that will serve as the world-class gateway to our region while bolstering our regional economy.” 

 

“Today's announcement brings us yet another step closer to rebuilding this key gateway into New York City," said Governor Kathy Hochul. "Replacing and expanding the Bus Terminal will mean the long held dream of creating modern infrastructure that prioritizes public space, bolsters local business and ensures the safety and wellbeing of travelers will finally become a reality."

 

“This federal loan for this vital, interstate transportation facility will enable the Port Authority to build a 21st century bus terminal that commuters from New Jersey and communities in New York City deserve and will rely on for decades to come,” said Port Authority Chairman Kevin O’Toole. “I thank our federal partners for their support for a project that will generate economic benefits for our entire region while improving the quality of life for commuters and the community where the terminal is located.” 

 

“The approval of a federal TIFIA loan for this phase of our bus terminal replacement project further demonstrates the unprecedented public and governmental support at every level for our plan to replace a reviled and obsolete piece of infrastructure with a new, state-of-the-art facility that sits in the heart of Manhattan,” said Port Authority Executive Director Rick Cotton. “We are grateful to our federal partners at USDOT for working collaboratively with us throughout the process of securing this critical loan, and we are grateful for the support of our New York and New Jersey congressional delegations.” 

 

“This significant funding will bring much-needed infrastructure upgrades to the Port Authority’s Midtown Bus Terminal,” said U.S. Sen. Kirsten Gillibrand of New York. “Funding like this is critical to improving the travel experience for all and a great example of the investments needed to give the city the infrastructure it deserves. I am proud to announce this funding and will continue to work to ensure that New York City receives the funding and support it needs to complete necessary projects and improve our infrastructure.”

 

“After years of planning and advocacy, the Midtown Bus Terminal replacement project will now become a reality,” said U.S. Sen. Cory Booker of New Jersey. “This project will support the millions of people commuting through the Port Authority Bus Terminal every year — and the hundreds of thousands of New Jerseyans who rely on it every day. With this approval, secured through the Transportation Infrastructure Finance and Innovation Act, the Port Authority can begin transforming the decades-old Port Authority Bus Terminal into the efficient, state-of-the-art transit hub our region deserves.”  

 

“The Biden-Harris administration’s awarding of $1.9 billion in TIFIA funding for the replacement of the bus terminal is good news for the region, the city, and my Hell’s Kitchen constituents,” said U.S. Rep. Jerrold Nadler of New York. “I was a strong supporter of this funding and advocated for it to be approved before the end of the Biden administration. All the federal approvals for this project are now complete, the financing is now in place, and the replacement bus terminal can move forward. A new bus terminal will improve air quality and make our streets safer for pedestrians by removing all commuter and inter-city buses from our streets. And finally, it will replace the eyesore of an outdated and deteriorating bus terminal with a modern, efficient transportation hub that meets the needs of both commuters and residents while contributing to the continued growth and success of New York City.” 

 

“I am proud to have worked with the Port Authority to claw millions of our federal tax dollars back from Washington to invest in the Midtown Bus Terminal replacement project and help the Port of New York and New Jersey,” said U.S. Rep. Josh Gottheimer of New Jersey. “I helped write, negotiate, and pass the Bipartisan Infrastructure Bill — which strengthened and expanded the TIFIA loan program. Now, these vital federal dollars will provide a critical investment to modernize our infrastructure, stimulate our economy, and improve the daily commute for hard-working Jersey families.” 

 

“Every day, thousands of New Jerseyans commute through Port Authority Bus Terminal in Midtown Manhattan to get to work, see family and friends, and take advantage of New York’s entertainment and cultural landmarks. But for too long, the bus terminal has been in a state of disrepair and unable to handle large volumes of traffic, leading to congestion and travel delays for families,” said U.S. Rep. Mikie Sherrill of New Jersey. “Today’s approval of federal TIFIA financing is a critical step to replacing the terminal with a world-class facility that lowers travel costs and improves bus times. I’m proud to have worked with the New Jersey and New York congressional delegations to secure critical funding for TIFIA through the Bipartisan Infrastructure Law to make this project a reality.” 

 

“With funding secured from the federal government, we’re one step closer to breaking ground on this transformational project that will enhance the experience for all those who rely on our transit system,” said U.S. Rep. Robert Menendez of New Jersey. “Each day, hundreds of thousands of commuters — many of whom are our residents — travel through the Midtown Bus Terminal. With the support of the Department of Transportation, we’re ensuring that this vital resource will be the benchmark for what the modern era of public transportation should look like. I’m proud to have helped our Port Authority partners secure this funding, and excited for the benefits that this will bring to our region.” 

 

“Our district in NJ-10 is a hub for vital transportation along the East Coast,” said U.S. Rep. LaMonica McIver of New Jersey. “This investment will create good paying union jobs for New Jersey, modernize the Port Authority Bus Terminal, and improve bus passenger experience. I am proud to work with the Department of Transportation to deliver crucial funding to New Jersey’s transit systems.” 

 

The Port Authority will borrow from the 25-year-old TIFIA federal loan program for the first time, taking advantage of subsidized loan costs and advantageous repayment terms that allow for principal and interest payments to begin up to five years following the project’s substantial completion. In addition to the TIFIA loan, financing for the first phase of the project will include Port Authority capital funding. Future phases will also use Port Authority capital for a significant portion of the cost, funding from air/development rights for potential new commercial towers above the new bus terminal and New York City’s contribution of PILOTs generated by the Port Authority’s development efforts. 

 

The $10 billion world-class facility will be completed in phases. When complete, the project will include a new 2 million square-foot main terminal, a separate storage and staging building and new ramps leading directly into and out of the Lincoln Tunnel. The project’s first phase — the temporary terminal, new ramps and Dyer Avenue deck-overs — is expected to be fully completed in 2029, and the new main terminal is expected to be completed in 2032. The project plan — including the permanent closure of a portion of 41st Street between Eighth and Ninth avenues, a central main entrance, more street-facing retail, a soaring multi-story indoor atrium and new public open space — will enhance both the commuter experience at the world’s busiest bus terminal and the community surrounding the facility. The project is expected to create approximately 6,000 good-paying union construction jobs. 

 

The Port Authority’s plan for the replacement of the Midtown Bus Terminal reflects public feedback from extensive community outreach, including input from New York City, commuters, local community boards and elected officials in both states. The federal record of decision permits construction of a full three-part building plan and deck-overs that will be converted to publicly accessible open space once the new main terminal is completed. The Port Authority Board of Commissioners approved construction contracts for the deck-overs in July, which were the first contracts associated with the bus terminal replacement project. The project also includes a wide array of community benefits, including:  

• Added capacity to allow curbside inter-city buses that currently pick up and drop off on city streets surrounding the bus terminal to move their operations inside the bus terminal and off the streets. 

• The new staging and storage facility will consolidate storage and staging functions in a single facility, minimizing bus idling and circulation around local city streets and reducing congestion in and out of the Lincoln Tunnel. 

• The creation of 3.5 acres of publicly accessible green spaces on Port Authority property by building platforms spanning the currently below-grade Dyer Avenue “cut” and turning the open space on top of the new deck-overs into public green spaces at the end of construction. 

• New concessions and retail amenities that will be accessible from the streets in the community as well as from inside the bus terminal. 

• The plan eliminates the taking of private property as it would be built on existing Port Authority property stretching as far west as 11th Avenue. 

The new bus terminal will be built for the future and designed to be net-zero emissions, accommodating all-electric bus fleets and implementing 21st century technology at every turn. The building will also include visionary sustainability and resiliency measures, from LEED certification and clean construction to onsite renewable energy, zoned heating and cooling systems, and heat recovery and reuse technology. The new ramp structure will provide a direct connection to the Lincoln Tunnel, with added queue space and bypass capability, thereby reducing bus circulation on local city streets. Community-friendly outward-facing local retail will benefit commuters and the community alike. 

 

The Port Authority’s construction plan for the new bus terminal is being developed with input from bus carriers, customers, the local community, world-renowned engineering and construction experts, and innovative architectural and design firms. Current plans provide for a phased construction approach with the staging and bus storage facility to be built first, so that it can serve as a temporary terminal while the existing terminal is demolished and rebuilt.  

 

About the Midtown Bus Terminal:

What is now the world’s busiest bus terminal opened in 1950, after the mayor of New York City requested the Port Authority to consolidate eight separate, smaller bus terminals throughout Midtown Manhattan in order to relieve street congestion. As the regional population grew and spread geographically, the Port Authority expanded the terminal’s capacity in 1963 by converting parking space to a fourth level of bus operations and adding three new levels of public parking for 1,000 cars. By 1966, the terminal served nearly 69 million passengers, once again requiring increased bus capacity. In 1970, the Port Authority created a 2-mile exclusive bus lane (XBL) on the New Jersey route 495 approach to the Lincoln Tunnel, giving buses faster access directly to the bus terminal and saving commuters up to 20 minutes in travel time. 

 

In 1981, the Port Authority expanded the bus terminal’s capacity by 50 percent with a new north wing extension to 42nd Street and the diagonal girder façade now familiar to bus riders. The current facility spans 1.9 million square feet as the nation’s largest bus terminal and the world’s busiest. Individual carriers, the largest of which is NJ TRANSIT, serve routes for daily commuters throughout New Jersey, eastern Pennsylvania, and the lower Hudson Valley, as well as provide intercity services to and from locations such as upstate New York, New England, the Mid-Atlantic and Canada. Prior to the COVID-19 pandemic, the bus terminal accommodated an estimated 260,000 passenger trips on an average weekday. As of 2024, the terminal served approximately 205,000 average weekday daily passengers. 

 

More information on the project is available at PABTreplacement.com. 

 

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The Port Authority of New York and New Jersey is a bi-state agency that builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. For over a century, the agency’s network of major airports; critical bridges, tunnels and bus terminals; a commuter rail line; and the busiest seaport on the East Coast has been among the most vital in the country – transporting hundreds of millions of people and moving essential goods into and out of the region. The Port Authority also owns and manages the 16-acre World Trade Center campus, which today welcomes tens of thousands of office workers and millions of annual visitors. The agency’s historic $37 billion 10-year capital plan includes unprecedented transformation of the region’s three major airports – LaGuardia, Newark Liberty and JFK – as well as an array of other new and upgraded assets, including the $2 billion renovation of the 93-year-old George Washington Bridge. The Port Authority’s annual budget of $9.4 billion includes no tax revenue from either the states of New York or New Jersey or from the city of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, visit www.panynj.gov or check out the Now Arriving blog.