PennDOT Advances Scranton-NYC Rail to SDP with $140M IIJA

PennDOT advanced the Scranton-NYC passenger rail corridor project to its Service Development Plan phase with $140 million in IIJA funding.

PennDOT Advances Scranton-NYC Rail to SDP with $140M IIJA
February 22, 2026 8:13 pm | Last Update: February 22, 2026 8:15 pm
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📉 Market Brief:
  • Event: PennDOT moves Scranton-NYC rail project to service development phase.
  • Key Data: $140 million in IIJA funding allocated to Pennsylvania.
  • Impact: Affects infrastructure planning and future transit access for northeast PA and northwest NJ.

The Pennsylvania Department of Transportation (PennDOT) has officially advanced the Scranton-to-New York Penn Station Passenger Rail Corridor project into its service development plan (SDP) phase. This action is supported by capital from the Infrastructure Investment and Jobs Act (IIJA) of 2021. The project’s progression is formalized through its selection under the Federal Railroad Administration’s Corridor Identification and Development Program, a mechanism established by the IIJA.

A discrepancy exists regarding the allocation of federal funds. PennDOT’s primary announcement states Pennsylvania received a total of $140 million under the IIJA for the expansion of passenger-rail services across the entire state. In contrast, verification data indicates the $140 million is specifically for advancing the Scranton-to-New York corridor project through its SDP phase. This difference in reporting affects the perceived funding concentration on this single corridor versus a broader statewide distribution.

The project’s objective is to restore intercity passenger-rail service along a 140-mile route. The corridor is designed to connect Scranton with New York Penn Station, servicing populations in northeast Pennsylvania and northwestern New Jersey. Economic justifications provided by PennDOT cite improved access to employment, business, tourism, and higher education institutions located along the proposed route.

Earlier this year, the Chicago Transit Authority secured funding after presenting a security plan. Full article title 📰

The progression of the Scranton-to-NYC corridor’s SDP, concurrent with the unblocking of capital for the Gateway program, signals a renewed flow of federal investment into Northeast rail infrastructure. The SDP will now proceed to define the specific operational, engineering, and financial requirements for the corridor.

Project/Funding InstrumentReported Value/Status
PA IIJA Statewide Rail Allocation$140 million
Scranton-to-NYC Corridor Length140 miles
Gateway Tunnel Project Budget$16 billion
Withheld Gateway Funds (Released Feb. 2026)~$130 million
Scranton-to-NYC Project PhaseService Development Plan (SDP)

The progression of the Scranton-to-NYC corridor’s SDP, concurrent with the unblocking of capital for the Gateway program, signals a renewed flow of federal investment into Northeast rail infrastructure. The SDP will now proceed to define the specific operational, engineering, and financial requirements for the corridor.