To make room for the construction of the Holland Tunnel exit plaza, a subway entrance at the station was reconstructed. In 1926, New York City, the New York State Bridge and Tunnel Commission, and the New Jersey Interstate Bridge and Tunnel Commission, reached an agreement to construct a passageway from the south side of Canal Street to the south side of Laight Street on the east side of Varick Street to replace the entrance. The cost of the project was split between the Bridge and Tunnel Commissions and the City, and was the first project done to separate pedestrian and vehicular traffic. Work on the project was underway in 1927. Pattelli & Wilson got the winning bid of $116,723 to construct the project.