Posted on December 21, 2025
The Port Authority of New York and New Jersey Board of Commissioners approved Dec. 19 a record $45 billion capital plan covering the 2026-2035 period that will chart the next decade of investment in the region’s transportation network.
The plan builds on the completion of major initiatives from the 2017-2025 capital plan such as the rebuilding of Terminal A at Newark Liberty International Airport and LaGuardia Airport and advances a new generation of projects that will modernize, strengthen and expand the agency’s infrastructure around the region.
The approved plan, first proposed in mid-November, funds both the completion of major projects in progress, including the new Midtown Bus Terminal to replace the obsolete, 75-year-old facility; the transformations at John F. Kennedy International Airport and Newark Liberty International Airport; and the PATH Forward program and significant PATH service increases. New initiatives include Newark’s new Terminal B, improved and more reliable mass transit access to LaGuardia Airport and a rebuild of the non-landmarked gate areas of LaGuardia’s Terminal A.
New initiatives that would receive funding include construction of the AirTrain Newark at Newark Liberty; improved and more reliable mass transit access to LaGuardia Airport; and rebuild of LaGuardia’s Terminal A. It would also include major service improvements for the PATH system, such as operation of all four lines seven days a week for the first time in 25 years and service increases during rush hours, nights and weekends.
The plan includes extensive rehabilitations of the Lincoln Tunnel Helix (valued at $640 million) and 97-year-old Outerbridge Crossing ($336 million), which spans the Arthur Kill between Perth Amboy and Staten Island. The $2 billion Restoring the George rebuilding program at the 94-year-old George Washington Bridge is 60% finished.
The plan also finances the Port Authority’s $2.7 billion portion of the ongoing Gateway program that will expand and renovate the Northeast Corridor rail line between Newark and New York City along the right-of-way between Newark Penn Station and New York Penn Station.
The agency says the capital plan would create more than 50,000 jobs, including more than 33,000 union construction jobs in the region.
“With this capital plan now officially adopted, the Port Authority enters a new chapter grounded in sustained investment and a proven record of execution,” said Port Authority Executive Director Rick Cotton, who is stepping down after 8½ years as the agency’s executive director.
“Over the last decade, this agency has shown what it can deliver, turning ideas into concrete realities such as award-winning terminals, rebuilt bridges, modernized transit hubs, and renewed infrastructure serving millions every day. The approved plan builds directly on that momentum. It will advance projects that improve reliability, shorten travel times, elevate the passenger experience, and prepare our region for the next century of growth and innovation.”
At John F. Kennedy International Airport, the first gates of the world-class international terminals 1 and 6 are set to open in 2026, and further sections of the rebuilt, simplified roadway network are set to come online. The plan also calls for designing and completing a transformation of AirTrain JFK with new train cars to double capacity, alongside new stations.
The 2026-2035 capital plan for Newark Liberty would provide funding for the Port Authority to establish a public-private partnership to design and build a new Terminal B. The plan calls for expanding Terminal A, including design and construction work on additional gates for future growth. A new $3.5 billion AirTrain Newark is under construction, improving reliability and capacity.
Construction is also set to be completed in 2026 on a new community access point to the Airport Train Station, transforming airport and mass transit access for underserved areas of Newark and Elizabeth. The capital plan would also finance a third major taxiway to reduce flight delays and a new, simplified roadway network.
The Port Authority plan calls for replacing the 85-year-old Terminal A at LaGuardia to meet demand and continued passenger growth while respecting the building rotunda’s landmark status. The plan would also fund an improved fast, free and frequent bus service with a new bus lane on the Brooklyn-Queens Expressway and new on-airport bus stop. Work will also be completed on a new taxi hold lot at Terminal B.
The 2026-2035 capital plan funds “Operation Legal Ride” — a 10-year, $100 million investment to combat predators who harass airport passengers by offering illegal rides and stealing business from credentialed drivers. This initiative was developed in consultation with the NYC Taxi and Limousine Commission and will include new technology tools, such as license plate readers, AI-aided CCTV, and an expanded database of unpermitted drivers, as well as an enforcement and deterrence strategy aimed at stopping repeat offenders.
Besides rebuilding the Bayonne and Goethals bridges, work is progressing on the 94-year-old George Washington Bridge, which is 60% completed. A new Midtown Bus Terminal, tied up in delays and objections since the Port Authority’s 2019 proposal, is moving forward with a design for the replacement that engaged the community.
The new bus terminal will provide direct, faster access to the Lincoln Tunnel, expanded terminal space, 21st-century technology and support for an all-electric fleet. The project will be done in two phases: Phase One, including new ramps and the storage and staging facility, will be completed by 2030. Phase Two, including the new main terminal and green space, will be completed by 2035.
PATH service upgrades involve more frequent rush hour and late-night weekend service and reinstating direct weekend service: Journal Square-33 St, Hoboken-33 St, and Hoboken-World Trade Center. The plan also funds all new uptown tracks, making critical infrastructure investments to enable faster and more reliable service, and the installation of new fare gates to thwart fare evasion.
The plan builds on the $3 billion investment from the prior capital plan to make the 117-year-old system more reliable. The $430 million PATH Forward program is nearing completion, repairing aging stations, tracks and switches to deliver a smoother, more reliable experience for customers.
The Port Authority’s plan also builds on previous capital plan investments for the seaport. The agency is advancing the deepening of the harbor to 55 feet in cooperation with the U.S. Army Corps of Engineers to enable the safer and more efficient movement of larger, high-capacity cargo vessels.
The agency aims to complete the World Trade Center campus with buildouts of Tower 2 and Tower 5, while making investments to maintain One World Trade Center as a Class-A office building that continues to attract high-quality tenants.
The Port Authority Board of Commissioners also approved the agency’s 2026 annual budget totaling $10 billion, which includes $4.2 billion for operating expenses; $4 billion in capital spending; and $1.7 billion in debt service payments; and a record $1.1 billion allocated to safety and security.
“The Board’s approval of this capital plan sets in motion a historic decade of activity for the Port Authority and for the region we serve,” said Port Authority Chairman Kevin O’Toole. “We are charting the next phase of a century-old mission defined by dreaming big, solving hard problems, and connecting millions of people to opportunity. This plan builds on the trust and momentum earned by delivering complex projects to a world-class standard. Through this visionary plan and the transformative work we continue to do, we are setting a new standard for the region and raising the bar for what public agencies can accomplish.”
In other Port Authority news, the agency’s board of commissioners Dec. 18 unanimously re-elected its chairman, vice-chairman and executive director, as well as all other incumbent officers of the Port Authority. Those who were re-elected are: Kevin J. O’Toole, chairman; Jeffrey H. Lynford, vice-chair; Richard Cotton, executive director; James E. McCoy, secretary; Amy H. Fisher, general counsel; Elizabeth M. McCarthy, chief financial officer; Daniel G. McCarron, comptroller; and Sherien N. Khella, treasurer.
In November, Cotton announced plans to retire from service in January 2026 and will continue to serve in office until the election of a successor. New York Gov. Kathy Hochul has nominated Kathryn A. Garcia to the office, which will be subject to future consideration of the board’s nominating committee and a recommendation to the full board of commissioners for approval.
The agency also announced Dec. 18 a 33-year lease extension at Maher Terminals, the largest and busiest container terminal at the Port of New York and New Jersey. The agreement secures operations at the terminal through September 2063 and includes investments to strengthen the regional supply chain and prepare the East Coast’s busiest port for continued cargo growth.
