The New York and New Jersey Port Authority has agreed to build a new bus terminal in Manhattan instead of Secaucus, N.J., after top appointees from the New York and New Jersey sides agreed to drop a pair of proposals. The committee also committed to upgrading area airports and rail service.

The Port Authority has pledged up to $15 billion to make the new transport hub a reality and a top priority when it finalizes its 2017-2026 Capital Plan. Had the terminal been built in New Jersey, it would have required many New Jersey natives to pick up transfers along their routes into New York City.

"The decision to put the bus terminal in Manhattan, so we can assure one-seat rides, is an enormous victory for commuters," said New Jersey Senate President Stephen Sweeney.

To come to terms, New York's top appointee dropped his push to place the bus terminal in New Jersey. Then, New Jersey's top appointee followed suit, agreeing to drop his opposition to improvements to LaGuardia Airport's main terminal.

With the bus terminal slated for construction in Manhattan and opposition dropped against the airport improvements, LaGuardia will get the $4 billion in improvements it needs. 

The plan is to "fundamentally transform LaGuardia" ... and replace the "outdated and poorly designed complex," with the type of airport New York "has always deserved," stated New York Governor Andrew Cuomo.

"This represents a major milestone for the project — the first of many — and I look forward to seeing construction begin later this year," Cuomo said. 

New Jersey's Newark Airport will receive $2.3 billion and a new rail project, the Gateway Program, will get $70 million in startup funds, although it will require an estimated $20 billion before it is complete. 

The Gateway Program, for which costs will be covered by a 50/50 split between the U.S. government and the Port Authority, is a collection of projects to bolster rail service between New York and New Jersey. Its main project will be the construction of a new rail tunnel under the Hudson River.

The project will also seek to revitalize the existing tunnels, replace bridges in New Jersey and expand three stations: New York Penn Station, Newark Penn Station and Secaucus Junction.

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