New Jersey to Challenge $271M Bill from Canceled Rail Tunnel

Gov. Christie seeks to stop the Federal Transit Administration from collecting money already spent on the Hudson River tunnel.

December 3, 2010

New Jersey Gov. Chris Christie (R) will challenge a $271 million bill from the federal government over the cancellation of a rail tunnel project.

Christie spokesman Michael Drewniak said the office is working on retaining a Washington law firm to stop the Federal Transit Administration from collecting money already spent on the Hudson River tunnel. He did not identify the firm but said it had experience in federal transit issues.

FTA sent the state a bill last week requesting $271 million already spent on engineering and construction be repaid within 30 days. Christie killed the $8.7 billion project in October because of possible cost overruns that could leave the state on the hook.

The tunnel would have run below the Hudson River to connect New Jersey to Manhattan, supplementing a 100-year-old two-track tunnel currently running at capacity. Christie has said he would consider a cheaper option that would extend New York's No. 7 subway line to New Jersey.

(Angela Delli Santi, AP/Philadelphia Inquirer, Dec. 2)

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