New York state's budget director insists an agreement is in place to have the federal government foot half the bill with New York and New Jersey for a $13 billion rail tunnel under the Hudson River.

Robert Mujica says in a letter Sunday to the deputy administrator of the Federal Transit Administration that the 50/50 deal was discussed at a meeting last August with President Donald Trump, Transportation Secretary Elaine Chao, both governors, and a congressional delegation from the region.

His letter comes after K. Jane Williams said Friday there is no agreement.

Williams wrote such a federal investment is higher than past 'mega projects'" and would deplete the existing grant program.

Mujica says the Gateway Tunnel is critical to the long-term vitality of the entire Northeast region.