Midtown, Manhattan, New York City

FTA approves $10 billion Manhattan bus terminal replacement project

December 17, 2024

The Federal Transit Administration (FTA) is approving the final environmental review and issuing a record of decision (ROD) for a world-class modernization project at the nation’s largest and world’s busiest bus station in New York City. 

The bus terminal replacement project, led by the Port Authority of New York and New Jersey, will reconstruct the 73-year-old Midtown Bus Terminal in Manhattan. Hampered by nearly a decade of delays, the FTA’s approval and issuance of ROD will push the $10 billion public transit project beyond the regulatory steps and allow the authority to begin the construction process as early as next year. 

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“We look forward to beginning the early works on a project many had thought would never happen: a new, best-in-class Midtown Bus Terminal,” Port Authority Executive Director Rick Cotton said in a press release. “Once complete, the new transit hub will take its place alongside our new airports as a beautiful, efficient and fitting gateway to our region that will benefit travelers and will become a valued community asset.” 

The Manhattan bus facility’s current iteration, constructed in 1981, spans 1.9 million square feet and serves approximately 205,000 passengers during each weekday. With several individual carriers utilizing the transit hub, passenger bus service at the terminal provides a vital link for communities in New Jersey, New York, eastern Pennsylvania, the lower Hudson Valley and interregional hubs across New England and Canada. 

The aging station, however, is functionally obsolete and doesn’t fully satisfy commuter needs, according to port authority officials. While expansion initiatives aren’t uncommon for the terminal and its routes, the port authority anticipates a complete reenvisioning for the aging structure to fully accommodate the projected growth ridership through 2050 and to improve the overall commuter experience. 

The multibillion-dollar transportation project will leverage funds from several sources to support the terminal’s replacement, including federal loans, development rights and Port Authority capital funding. This financial backing will include an estimated $2 billion from New York City’s PILOT tax revenue program to advance the bus terminal project. 

Based on extensive public feedback, the project will move forward with an improved version of the locally preferred construction plan. This plan involves building a new commuter and intercity bus facility at the site of the current terminal, with a design that can support future growth in commuter traffic. 

Part of the project includes a new storage and staging facility to the west of the main terminal to streamline bus operations, reduce bus idling and improve traffic connections to the Lincoln Tunnel. As a main priority of the project, the Port Authority will reduce congestion along curbs next to the station by rerouting buses through the new terminal and off the busy city streets. 

Seeking to bring transit operations into the future, the proposed bus terminal will feature all-electric bus fleets and technologies poised to improve passenger safety, streamline bus operations and enhance environmental justice initiatives. 

The new terminal will also include a range of public benefits, including expanded capacity for inter-city buses, improved traffic flow around the Lincoln Tunnel and new retail and dining options that will serve commuters, tourists and the local community.  

To not substantially hamper transit operations, New York City’s Midtown Bus Terminal project will be implemented in a staged approach. While the full project is slated for completion sometime in 2032, the project will begin its first initial staging efforts as early as next year. 


Photo courtesy ajay_suresh, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons

Brady Pieper

written for various daily and weekly publications in Texas and Colorado, specializing in the government market and in-depth bill coverage. Graduating from the University of Texas at Austin with a degree in Journalism, Pieper has been at the forefront of public and private sector communications and government initiatives. Pieper recently joined the Government Market News team as a content writer and anticipates continuing SPI’s long-standing tradition of delivering timely, accurate and significant government news to our readers and partners.

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