New Jersey Owes $271 Million for Tunnel Christie Cut

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New Jersey must repay the U.S. government $271 million immediately for money spent on the proposed Hudson River rail tunnel that Governor Chris Christie canceled, a Federal Transit Administration official said.

The state also will owe “reasonable interest and penalty charges that will be determined by FTA,” Brigid Hynes-Cherin, the administration’s regional administrator in New York, wrote in a letter yesterday to James Weinstein, executive director of New Jersey Transit. The state lost its claim on another $79 million earmarked for the project, she said.