Federal transit officials have reversed a Trump administration policy from 2018 that supporters of a new Hudson rail tunnel say had stalled the project.

The Federal Transit Administration on Tuesday rescinded a rule that didn't allow states or local entities to use federal loans as part of their funding match to get federal grants. The FTA had cited a funding shortfall to give the tunnel low ratings for the past few years, making it ineligible for the key federal grants.

Supporters say that the $11 billion project is vital to increase rail capacity and allow for the overhaul of the existing, 110-year-old tunnel.

Gov. Phil Murphy praised the decision.

“For four long years, President [Donald] Trump let the Hudson Tunnel Project languish and twist in the political wind. Now, under President [Joe] Biden, we can make up for lost time and get this vital program and the thousands of jobs it will produce – back on track,” Murphy said in a statement.

The governor also says that there is a plan to replace the largest transportation hub in southern New Jersey, announcing $250 million for upgrades to the Walter Rand Center in Camden.

An initial design phase is expected to take about nine months.

The Associated Press wire services contributed to this report.