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(The Associated Press circulated the following article on July 21.)

TRENTON, N.J. — A day after the U.S. Department of Transportation gave a green light for engineering work on a new rail tunnel between New Jersey and Manhattan, a U.S. Senate committee earmarked $8.4 million for the project.

“This is another big step toward a project that will give New Jersey rail commuters a much-needed new route to Manhattan,” said Sen. Frank R. Lautenberg, D-N.J.

The new tunnel would double capacity of NJ Transit trains to carry commuters from northern New Jersey to Manhattan. As proposed, the tunnel would begin in North Bergen and continue under Union City and Hoboken, extending to a new station under 34th Street in Manhattan.

All commuter and Amtrak trains currently must pass along two tracks — one in each direction — that already operate at capacity during rush hour.

The $8.4 million was approved by the committee as part of the 2007 transportation appropriations bill. The bill now heads to the full Senate for a vote.

The project is estimated to cost $7.2 billion. Major construction dollars for the rail tunnel won’t come until after the Federal Transportation Administration and NJ Transit sign a full-funding grant agreement. That milestone comes after engineering plans are approved and usually takes years to reach.

Federal funding for the tunnel would need to be matched by local agencies. Governor Corzine has already committed New Jersey to provide $500 million.

Anthony Coscia, chairman of the Port Authority of New York and New Jersey, is pushing for the bi-state agency to commit $2 billion to the project.

In December, the authority’s board included the project in its list of priorities.