$2B Rail Link Proposal Heads to Congress

NEW YORK CITY-A controversial transportation initiative wins influential support as President George W. Bush sends a request from Mayor Michael Bloomberg and Gov. George Pataki before Congress. Bush approved the request to redirect up to $2 billion in Liberty Zone tax benefits toward other projects such as building a new rail link from Long Island and JFK airport into Lower Manhattan.

According to the mayor and governor, the link would “increase the global competitiveness of New York while helping hundreds of thousands commuters on Long Island and boosting the long-term job creation efforts in the city.” A number of senior business executives representing 18 Downtown firms noted that this rail link will create 56,000 jobs in Lower Manhattan and Downtown Brooklyn and produce more than $6 billion in economic output annually.

However, the rail link is not without its critics. A study of Lower Manhattan residents conducted earlier this year found that the rail link connection is not a popular use for the remaining funds. In a survey conducted by the Fiscal Policy Institute and Regional Plan Association, residents listed their priorities for the funds as housing (39%); followed by local economic development (23%); community services and facilities (17%); arts and culture (15%); and the JFK/LIRR tunnel (6%).