The Century-Long Quest for Regional Transit Governance

For over a century, the New York metropolitan area has grappled with a fundamental paradox: a seamlessly interconnected economic region divided by state boundaries and fragmented governance. Since the 1890s, visionary engineers, public officials, and planning bodies have proposed ambitious solutions to unite the region's transportation network. Yet despite forty years of serious attempts by the 1960s—and continuing efforts through today—the record has been one of "failure and frustration." This timeline traces the evolution of these efforts, from Gustave Lindenthal's railroad bridge proposal to modern debates over through-running at Penn Station, revealing how institutional constraints, financing challenges, and political boundaries have repeatedly thwarted regional integration.

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The first serious attempt to solve railroad access to Manhattan came in the 1890s when Gustave Lindenthal proposed constructing a massive railroad bridge spanning the Hudson River to provide a union terminal in New York City for the rail lines that terminated on the New Jersey side. This visionary proposal would have fundamentally altered the region's transportation infrastructure by unifying the fragmented railroad terminals. However, the plan collapsed due to lack of cooperation between the competing railroads, each jealously guarding their own operations and unwilling to share facilities.

Recognizing this failure, the Pennsylvania Railroad undertook its own solution, constructing an under-river tunnel to New York. In 1910, it opened the first and still the only direct long-haul rail line between New York City and the lines traversing New Jersey. This engineering marvel established Penn Station as the sole direct railroad gateway into Manhattan from the west, a distinction it maintains to this day.

To serve commuters from other railroads, the McAdoo Brothers constructed the Hudson and Manhattan Railroad (H&M), which opened separate tunnels to serve downtown and midtown Manhattan. Unfortunately, the H&M tunnels and facilities were not constructed on a scale large enough to provide substantial additional service, ruling out the Hudson and Manhattan as a base for extended regional commuter service. These early attempts predated the organized "solutions to the commuter problem" that would begin in earnest after World War I.

The New York-New Jersey Port and Harbor Development Commission was created in 1920, laying the groundwork for the Port of New York Authority (established 1921, becoming operational 1922). The Commission's Comprehensive Physical Plan identified "the most pressing element of the entire port problem" as railroad service to and from Manhattan. The Authority's enabling legislation granted it "full power and authority to purchase, construct, lease and/or operate any terminal or transportation facility," including all forms of rail transit—language that would later fuel decades of debate about its responsibilities.

In 1921, L. Alfred Jenny, the engineer who had helped build Grand Central Terminal, submitted his first Belt Line plan proposing an inner passenger loop from New Durham, New Jersey, under the Hudson to 57th Street, down Manhattan under Broadway, connecting to H&M tracks, and returning to New Jersey. Trains would operate electrically in both directions, with transfer stations wherever the loop intersected existing rail lines. This plan was rejected by the Port Authority but Jenny would continue refining and resubmitting variations for the next thirty years.

The North Jersey Transit Commission, created by the New Jersey Legislature in 1922, became the most comprehensive planning body of the era. Its famous 1924 traffic census documented commuter patterns that would be cited for years. The Commission's 1926 master plan proposed an Interstate Loop system with estimated construction costs of $154 million for the seventeen-mile facility, including Manhattan subways and tunnels. The plan innovatively suggested coordination with Westchester to expand the two-track line to four tracks, potentially reducing costs by $22 million.

The Suburban Transit Engineering Board was created in July 1927 as a joint effort including representatives from New Jersey, Westchester, Nassau, Suffolk, New York City, the railroads, and the Port Authority. After spending $220,000 on studies through 1930, the Board produced comprehensive engineering reports for three geographic sectors but gave no consideration to legal, financial, or operating problems. In October 1931, citing changing economic conditions and the Depression, the Board recommended suspending further consideration "for at least a year." It disbanded shortly thereafter, along with the North Jersey Transit Commission.

Critical financial thinking emerged in the North Jersey Transit Commission's 1927 report, prepared by Philip Cornick, which concluded that "it is improbable that an extended and coordinated rapid transit system... can be financed except through a public agency" with power to "pledge the full faith and credit of the district." The report advocated for benefit assessments, arguing that property values would increase proportionally to proximity to transit. The Commission's 1929 report went further, recommending creation of a North Jersey Metropolitan District with financial autonomy, authority to construct and manage regional projects, and "power to negotiate and contract on regional matters of interstate concern."

Throughout the 1930s, despite the Depression, planning continued. The Regional Plan Association (successor to the Committee on the Regional Plan financed by the Russell Sage Foundation) issued reports, including a 1935 declaration that "Motor vehicles cannot supplant rail facilities as a means of commuter transportation between New Jersey and Manhattan." The Port Authority's landmark 1937 report "Suburban Transit for Northern New Jersey" made the first clear statement that rapid transit would require public subsidy, estimating annual deficits of $417,000 to $5.3 million even with complete tax forgiveness. The Authority explicitly stated it lacked the power to levy taxes or assess benefits and was "not the proper instrumentality" for deficit operations.

The post-war suburban boom brought crisis. Bergen County's population exploded by 45% in the 1950s, yet the nine private railroads serving commuters were collapsing. Of 1,300 rail cars in New Jersey service, only 30 were modern and 150 air-conditioned. The seven major railroads lost $13 million annually on passenger operations. In 1951, the Port Authority formally advised Governor Driscoll it could not undertake deficit rail transit financing without "inflicting serious damage upon the Authority's credit structure."

Both states created individual rapid transit commissions in 1952. These merged to form the bi-state Metropolitan Rapid Transit Commission (MRTC) in 1954, receiving $800,000 from the Port Authority for interstate studies and $150,000 each from the states. The Commission was initially criticized—City Planning Commissioner Goodhue Livingston Jr. accused it in 1953 of "dragging its feet" and blamed Governor Dewey's "lack of boldness and vision."

Arthur W. Page, the MRTC's project director, presented his comprehensive plan in May 1957. The physical plan called for a $400 million rail loop with two Hudson River tunnels carrying commuters between Manhattan and New Jersey. The Commission's final 1957-58 proposal increased costs to $500 million, abandoning the BMT connection for a new Manhattan subway from the Battery up Fifth Avenue to 23rd Street, along Madison Avenue to 59th Street. The system would run an estimated annual deficit of $12-14.5 million, to be covered by property taxes in the benefiting counties.

Herman T. Stichman, court-appointed trustee of the bankrupt Hudson & Manhattan Railroad, emerged as a fierce critic and alternative voice. His H&M operated "the only rapid transit system in the world operating air-conditioned cars" by 1958. Stichman proposed utilizing existing H&M tunnels with only one new tunnel at 59th Street, costing under $100 million versus the MRTC's $500 million. He argued his plan could be completed in two years versus five for the MRTC plan. He warned the MRTC loop would destroy the H&M by relegating it to "an unimportant connection with downtown New York," eliminating the 33rd Street run.

The Port Authority maintained its refusal to participate. Executive Director Austin J. Tobin stated the Authority had been "unable to devise any method of financing such an improvement without endangering its financial position." When State Senator Wesley Lance asked if the Authority might contribute to connecting the Jersey Central and H&M, Tobin estimated costs at $15-40 million but offered no support.

The death blow came in 1958-59 when the New Jersey Legislature rejected the financing plan. The proposed transit district would have had power to levy property taxes across nine New Jersey counties and three New York counties. Suburban legislators, particularly from counties that would be taxed, revolted against what they saw as subsidizing urban commuters. The deeply ingrained political culture of "home rule" in New Jersey—fierce protection of local autonomy—proved insurmountable. The MRTC plan died, establishing a permanent political prohibition against regional property taxes for transit.

With comprehensive solutions dead, pragmatism prevailed. The focus narrowed to saving the bankrupt Hudson & Manhattan Railroad. Herman Stichman, as court-appointed trustee, had modernized the system with air-conditioned cars, but financial collapse was imminent. The H&M carried 113 million passengers annually in the early 1930s, but competition from Port Authority vehicular crossings had devastated ridership.

New Jersey's strategy, led by Highway Commissioner Dwight R.G. Palmer and the Division of Railroad Transportation, was to compel the Port Authority to take over the H&M. After intense negotiations between Governors Nelson Rockefeller and Richard J. Hughes, a landmark compromise emerged in 1962. The Port Authority acquired the H&M, rebranding it as Port Authority Trans-Hudson (PATH), but only after securing authorization to build the lucrative World Trade Center as compensation.

Most critically, the 1962 legislation included a statutory covenant that would haunt regional planning for decades. Governor Rockefeller stated upon signing: "To preserve the Port Authority's credit strength the bill includes a covenant by the two states that additional deficit financing of future railroad projects will only be undertaken within the financial limits set forth in their covenant." This limited the Port Authority's exposure to deficit transit operations to 10% of its General Reserve Fund—approximately $14.5 million annually by 1971 calculations. The covenant created a legal wall between the Authority's wealth and the region's transit needs.

Regional planning bodies proliferated but lacked power. The Tri-State Transportation Committee was created in 1961 as an advisory body. The Metropolitan Regional Council, established in 1956, struggled for legitimacy as critics called it a "Trojan Horse" for "metro" supergovernment. By 1963, bitter battles led Westchester and Suffolk Counties to reject membership. The 1959 Sayre Committee had urged giving the Council "full legal status" with a professional secretariat, but political resistance prevented any real authority.

The Urban Mass Transportation Act of 1964 fundamentally altered the regional dynamic by making federal capital grants contingent on formal regional planning through officially designated Metropolitan Planning Organizations (MPOs). This federal mandate finally forced the states to create institutions with real planning authority.

The Tri-State Transportation Committee was elevated to the Tri-State Transportation Commission in 1965, becoming the official MPO. Despite resistance—New Jersey Republicans initially blocked the formal compact fearing they'd subsidize the bankrupt New Haven Railroad—the commission began coordinating federal funding distribution. A failed 1963-64 demonstration project providing Rockland County bus feeder service to the New York Central illustrated the challenges of inter-state coordination.

The transformative moment came in 1968 when Governor Rockefeller created the Metropolitan Transportation Authority (MTA). This powerful public-benefit corporation consolidated New York City's subways and buses, the Long Island Rail Road, and what would become Metro-North. Robert Moses initially opposed losing his Triborough Bridge and Tunnel Authority but was overruled. The MTA secured dedicated funding through TBTA toll cross-subsidies—finally solving New York's deficit problem by marrying profitable bridges and tunnels with unprofitable transit.

In 1966, Governor Hughes urged the Port Authority to study connecting railroads across the Meadows, proposing either physical linkage or transfer stations between Harrison and Secaucus. The Authority agreed to study but remained reluctant. Austin J. Tobin's 1966 response emphasized that any rail improvements must be "financially self-supporting." The decade ended with powerful state-centric institutions—the MTA in New York, preliminary agencies in New Jersey—that hardened rather than bridged the institutional silos preventing true regional integration.

The Tri-State Regional Planning Commission (TSRPC), reconstituted in 1971, struggled as a "top-down bureaucracy." An Inter-Agency Task Force including MTA's William Ronan, Port Authority's Austin Tobin, and New Jersey Transportation's John Kohl reported that Penn Central tunnel capacity of 26 trains per hour could provide limited service through connections at Harrison and Secaucus, "possibly a decade sooner than service via a new rail tunnel."

In November 1972, Governors William Cahill and Nelson Rockefeller announced a $650 million program: PATH extension from Newark to Plainfield ($390 million for New Jersey) and Erie-Lackawanna connections to Penn Central at Kearny and Secaucus. They agreed on legislation to repeal the 1962 bond covenant, setting up a constitutional confrontation.

Theodore W. Kheel, labor mediator and Port Authority critic, filed suit in March 1971 claiming the Authority had abandoned its original 1921 mandate for mass transit. The case was dismissed for failing to "raise substantial federal questions." More significantly, the legislative attempt to repeal the bond covenant reached the U.S. Supreme Court. In 1977, United States Trust Co. v. New Jersey struck down the repeal as violating the Constitution's Contract Clause, establishing that states could impair their own obligations only if "reasonable and necessary"—which the Court found this was not.

Meanwhile, New Jersey's transit system collapsed. Conrail operated failing rail service while PSE&G's subsidiary Transport of New Jersey (TNJ) ran deteriorating buses. The Erie Lackawanna threatened to abandon commuter service. The Jersey Central hovered near bankruptcy. Citizens groups like "Commuter Wives" and "Irate Shore Commuters" protested through picketing and sit-ins on tracks. Voters rejected three consecutive transportation bond issues.

Governor Brendan Byrne recruited Lou Gambaccini in 1978 as Transportation Commissioner. Gambaccini, a Port Authority veteran, declared that subsidies had grown from $500,000 to $50 million in nine years "with nothing to show for it. Ridership is down, service is terrible. We have the most fragmented transportation system in the world with 200 independent bus companies." His forensic analysis discovered the state was paying $5 million in pension liabilities legally belonging to PSE&G—leverage he would use to force change.

Commissioner Gambaccini leveraged his discovery about PSE&G's pension liability to force the company to negotiate the state takeover of TNJ. Through sophisticated stakeholder engagement, he built a coalition for fundamental change. On July 17, 1979, legislation creating New Jersey Transit Corporation passed the State Assembly by a single vote. That November, voters approved a $475 million Transportation Bond Issue after Gambaccini won endorsements from environmental groups and the League of Women Voters—groups that had never before supported transportation bonds.

NJ Transit began operations in October 1980, taking over TNJ's buses to become one of the nation's largest bus systems. On January 1, 1983, it assumed Conrail's commuter rail lines, finally unifying New Jersey's fragmented network under a single public authority with an independent board designed to be insulated from politics.

This state-level triumph coincided with regional planning's complete collapse. The Metropolitan Regional Council died in 1979 when Tri-State Regional Planning Commission ended financial support. MRC-TV, an innovative closed-circuit television network for inter-agency communication, lost funding despite its potential. Connecticut withdrew from TSRPC in 1981 during a budget crisis, upset over affordable housing mandates. New York followed, and the commission dissolved in 1982.

Reagan-era policies encouraged decentralization. The region splintered into ten separate Metropolitan Planning Organizations, none crossing state lines. Weaker sub-regional councils like the New York Metropolitan Transportation Council (NYMTC) emerged primarily to channel federal funds, not forge regional vision. A 1979 task force recommended dropping Somerset, Middlesex, Morris, Monmouth, and Passaic counties from the planning region, noting only 5-6% of workers commuted to New York City.

The institutional vacuum proved catastrophic. The 1980s witnessed massive car-oriented office development in suburban New Jersey—the Meadowlands, Route 287 corridor—with no mechanism to link growth to transit. The region locked into sprawling, car-dependent land use patterns. The intractable congestion that resulted was the direct consequence of abandoning regional governance even as New Jersey successfully built its state transit agency.

The sprawl of the 1980s created a crisis at the region's most critical choke point. The entire Northeast Corridor funneled through just two single-track, century-old tunnels into Penn Station. Daily commuter volumes approached the absolute capacity limits of infrastructure built for a different era.

The Regional Plan Association's ambitious 1996 master plan proposed dismantling the Port Authority and MTA, creating a tri-state Regional Transportation Authority modeled on Paris and Tokyo. RPA director Robert Yaro claimed this could save $500 million annually in "turf skirmishes." The $25 billion plan included a Second Avenue Subway, LIRR connections to Kennedy Airport and Grand Central, and 25 miles of new track. The Giuliani administration expressed skepticism, with Planning Director Joseph Rose questioning whether "some new regional entity" would prioritize city needs. The proposal went nowhere.

Access to the Region's Core (ARC) began as a Major Investment Study in 1995, evaluating 137 alternatives across all modes. After years of analysis, ARC emerged as a $9 billion effort to double trans-Hudson capacity through new tunnels and a deep-cavern station beneath 34th Street.

ARC's design fatally reflected the institutional fragmentation it meant to overcome. Initial concepts for through-running connections to Grand Central were vetoed by the MTA, citing impacts on Metro-North and LIRR operations. The terminal became a stand-alone, stub-end station with no track connections to Penn Station, LIRR, or Amtrak. Every NJ Transit rider would need to disembark and navigate long escalators to reach the surface—perpetuating the inefficiencies of terminal operations rather than enabling network benefits of through-running.

The Regional Plan Association's "Regional Express Rail" concept, advocating through-running trains connecting New Jersey, Long Island, and Connecticut at a unified Penn Station, was dismissed as too complex, too expensive, or outside institutional mandates. By 2009, with construction underway, the region was committing to a 20th-century terminal solution for a 21st-century network problem.

In October 2010, Governor Chris Christie unilaterally canceled ARC, citing potential cost overruns New Jersey would bear alone. Three years of construction and billions in sunk costs were abandoned. Senator Charles Schumer later emphasized that future projects must be structured so they cannot be "stopped by one public official pulling the plug."

From ARC's rubble, Amtrak unveiled the Gateway Program in February 2011—a comprehensive plan conceived as a multi-agency, multi-state program benefiting the entire Northeast Corridor. Gateway included new tunnels, Portal Bridge replacement (the 100-year-old swing bridge over the Hackensack River), and Penn Station expansion. Unlike ARC's isolated terminal, Gateway embraced network integration.

Superstorm Sandy in October 2012 inundated the existing tunnels with corrosive saltwater, accelerating deterioration. Engineers warned that reconstruction would reduce capacity by 75%, triggering economic catastrophe. The Gateway Development Commission was created in 2016 but failed to break political deadlock during the Trump administration.

A 2015 Record columnist captured the region's dilemma: "We are the lost children of Moses"—not the biblical figure but Robert Moses, whose highway-centric vision shaped the region. The columnist called for "an anti-Moses, an ego-driven public official who will champion mass transit," suggesting Christie could play this role if he abandoned presidential ambitions "blocked by more than orange traffic cones."

By 2016, federal officials expressed optimism. Transportation Secretary Anthony Foxx announced Gateway was first to apply for "Emerging Projects" loans from a $35 billion program. The project gained fast-track status through the "President's Permitting Dashboard," potentially saving billions. Preliminary estimates put total costs at $23 billion, funded through federal grants, low-interest loans, and state contributions.

The 2020s brought renewed federal engagement despite pandemic disruption. Gateway advanced with unprecedented federal infrastructure funding, but fundamental debates about Penn Station's future intensified.

A coalition including ReThinkNYC, the City Club, and Tri-State Transportation Campaign advocated for through-running rather than building a massive "Penn South" terminal annex. Through-running would allow trains to continue through Penn Station rather than terminating, potentially achieving similar capacity gains without $16.7 billion in construction costs. Philadelphia's system demonstrated 22% reduction in crew-hours and 53% reduction in trainset needs through operational efficiency.

Studies revealed through-running's benefits: creating one-seat rides between New Jersey, Long Island, and Connecticut job centers; improving reverse-commute options for working-class populations; inducing mode shift from cars to electric rail with environmental benefits. The approach promised to achieve network effects that had eluded the region since the first proposals a century earlier.

Yet the fundamental challenge remains unchanged since the 1920s: creating an empowered tri-state regional rail authority to overcome the fragmented operations of MTA, NJ Transit, and Amtrak. Without new governance structures and labor agreements to harmonize work rules—challenges illustrated by the complex coordination required for even limited services like the discontinued "Train to the Game" to the Meadowlands—even the best engineering solutions risk failure.

As of 2025, the region stands at a familiar crossroads. The technical solutions are well understood—they echo proposals from L. Alfred Jenny in 1921, the North Jersey Transit Commission in 1926, and countless studies since. The financing mechanisms are clearer than ever with federal support. Yet the institutional barriers that killed the MRTC plan in 1958, that limited the Port Authority through the 1962 covenant, that dissolved regional planning in 1982, remain fundamentally intact. The century-long quest for unified regional transit governance continues, with each generation rediscovering that the metropolitan region functions as one economic unit divided by political boundaries that transportation alone cannot transcend.

The journey for integrated regional transit governance continues...