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(The Associated Press Writer circulated the following story by Janet Frankston on July 27.)

NEWARK, N.J. — The Port Authority of New York and New Jersey on Thursday will approve up to $2 billion to fund construction of a proposed $6 billion commuter train tunnel under the Hudson River, its chairman said.

Anthony Coscia, chairman of the bistate agency, said the board at its Thursday meeting would vote to authorize an initial $1 billion and a second allocation of $1 billion by the end of the year.

“This will provide funding for a modern mass transit system, a system that for 40 years was designed around the automobile and doesn’t serve the needs of what the region requires today,” he said.

The funding approval would be another significant step for the proposed two-track tunnel, a massive project that has been discussed for more than a decade and would double commuter rail capacity between the two states in a decade.

Last week, the project _ known officially as “Access to the Region’s Core” _ cleared a major hurdle when the Federal Transit Administration advanced it into the preliminary engineering phase.

That designation doesn’t come with an earmark of funding, but it allows New Jersey Transit to compete for future federal money.

The major construction dollars would not come until after the FTA and NJ Transit sign a full-federal grant agreement, which usually takes years to reach.

But the Port Authority money, coupled with New Jersey Gov. Jon S. Corzine’s allocation of $500 million, shows the federal government that the states are committed, said George D. Warrington, NJ Transit’s executive director.

“This sends a clear signal that the region is serious in its commitment to the project,” he said.

The Port Authority’s allocation for the tunnel “brings us another step closer to our funding goals,” said Anthony Coley, a spokesman for Gov. Jon S. Corzine. “It continues to be important for the region’s economic growth and for quality of life for our residents.”

New York Gov. George Pataki has said he supports the project, but has not yet committed any state money, a spokeswoman said.

The four U.S. senators from New Jersey and New York also have said publically they support the project.

Construction could begin as soon as 2009 and be complete by 2016.

Warrington said preliminary engineering would begin next week and take up to 18 months, and the initial environmental work would be complete over the next year, with public hearings beginning this fall. Last week, a U.S. Senate committee earmarked $8.4 million for engineering and environmental work.

Transportation officials say the second tunnel would save commuters at least seven minutes per trip, ease traffic congestion and allow more frequent service.

During the morning rush hour, 96 trains could travel to Manhattan compared to 46 today.

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.

It would also provide a direct ride for commuters to Manhattan on several NJ Transit lines, avoiding transfers at Newark and Secaucus Junction.

Coscia said the project would return the Port Authority to its mission of building large-scale regional transportation projects.

It built the Lincoln Tunnel, which opened in 1945, at a cost of $75 million; the Holland Tunnel, which opened in 1927, at a cost of $48 million; and the George Washington Bridge, which opened the upper level in 1931, at a cost of $59 million.