When did construction on the new Port Authority Bus Terminal begin?

A groundbreaking for the first stage — deck-overs on Dyer Avenue between 37th and 39th Streets — was held May 29, 2025, attended by New York Governor Kathy Hochul and New Jersey Governor Phil Murphy.

How much does the project cost and who pays?

The full replacement is estimated at about $10 billion. In January 2025 the U.S. Department of Transportation provided a roughly $1.9 billion federal Build America loan toward Phase 1.

When will the new terminal open?

The new Main Terminal is targeted to be operational around 2032, with full project completion projected by 2040.

Why is the old terminal being replaced?

The existing Midtown terminal is about 75 years old, overcrowded and functionally obsolete. The replacement adds a separate bus storage building and new ramps directly to and from the Lincoln Tunnel to get idling buses off city streets.

Ground Breaks on the $10B Port Authority Bus Terminal Replacement

Construction began on the long-delayed replacement of the Port Authority Bus Terminal on May 29, 2025, when New York Governor Kathy Hochul and New Jersey Governor Phil Murphy broke ground on the first stage of what the Port Authority of New York and New Jersey calls a roughly $10 billion rebuild of the busiest bus terminal in the country.

The ceremonial groundbreaking marked the start of work on deck-overs along Dyer Avenue between 37th and 39th Streets — the platforms that will carry a temporary bus storage and staging facility used during construction. Rick Cotton, the Port Authority’s executive director at the time, called it a milestone reached after years of delay. Cotton announced he would retire from the agency in January 2026.

What’s being built

The existing terminal, on Eighth Avenue between 40th and 42nd Streets, is about 75 years old, chronically overcrowded and, in the Port Authority’s own words, functionally obsolete. The replacement program includes:

A new Main Terminal on the footprint of the current building.
A separate bus storage and staging building, served by the Dyer Avenue deck-overs now under construction.
New ramps connecting directly to and from the Lincoln Tunnel, designed to pull buses off Midtown streets where they currently idle and circle.

The agency says the project will also add public green space atop the new structures.

How it’s funded

In January 2025, the U.S. Department of Transportation committed a roughly $1.9 billion loan through its Build America credit program toward the first phase of the replacement, a significant federal endorsement of a project that had stalled for years over financing. The Port Authority is funding the balance through its own capital program and project financing.

The phasing matters: Phase 1 elements, including the temporary facilities, are targeted for completion around 2028; the new Main Terminal is projected to open around 2032, with the full project — additional structures and street-level improvements — slated for completion by 2040.

Why it matters

The Port Authority Bus Terminal handles tens of millions of bus trips a year, the primary gateway for New Jersey commuters and intercity buses into Manhattan. Its decay has been a running symbol of cross-Hudson infrastructure neglect, and previous replacement plans collapsed amid disputes between the two states. The May 2025 groundbreaking — paired with the federal loan — is the clearest sign yet that this iteration is actually being built, though completion remains the better part of a decade away. The terminal rebuild also dovetails with the Port Authority’s broader $45 billion capital proposal advanced in late 2025, which bundles the bus terminal with airport and PATH investments.

Verification

Hochul and Murphy break ground May 29, 2025 on Dyer Avenue deck-overs, first stage of new Midtown Bus Terminal — Governor Hochul press release
~$1.9B federal Build America loan for Phase 1; $10B project; 2028/2032/2040 timeline — USDOT Build America project page
Project scope: new main terminal, storage building, Lincoln Tunnel ramps; 75-year-old facility — 6sqft
Executive Director Rick Cotton to retire January 2026 — panynj.gov
Port Authority $45B capital proposal pairing bus terminal with airports and PATH — ROI-NJ

Frequently Asked Questions

When did construction on the new Port Authority Bus Terminal begin?: A groundbreaking for the first stage — deck-overs on Dyer Avenue between 37th and 39th Streets — was held May 29, 2025, attended by New York Governor Kathy Hochul and New Jersey Governor Phil Murphy.
How much does the project cost and who pays?: The full replacement is estimated at about $10 billion. In January 2025 the U.S. Department of Transportation provided a roughly $1.9 billion federal Build America loan toward Phase 1.
When will the new terminal open?: The new Main Terminal is targeted to be operational around 2032, with full project completion projected by 2040.
Why is the old terminal being replaced?: The existing Midtown terminal is about 75 years old, overcrowded and functionally obsolete. The replacement adds a separate bus storage building and new ramps directly to and from the Lincoln Tunnel to get idling buses off city streets.