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In the New Starts report issued earlier this week, the Federal Transit Administration (FTA) boosted its rating for New Jersey Transit's Access to the Region's Core (ARC) project to "medium high," improving the project's chances of obtaining federal funds.

The FTA noted that project managers have "put together an experienced design team and performed thorough analysis of project requirements," according to NJ Transit. The federal agency expects to issue a final record of decision to advance the project later this year.

The $7.5 billion ARC project calls for two new single-track tunnels between New Jersey and New York, another station under 34th Street in Manhattan connecting to Penn Station, and signal and track improvements along and adjacent to the Northeast Corridor.