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New Jersey Eligible for $128 Million Tunnel Refund, U.S. Says

New Jersey will get a refund of almost half the $271 million it owes the federal government for canceling a proposed commuter-rail tunnel once the money is repaid, U.S. Transportation Secretary Ray LaHood said.

LaHood agreed to return $128 million to replenish other New Jersey transportation accounts depleted to finance the tunnel, according to a letter to U.S. Senator Frank Lautenberg, which the Democratic lawmaker released today. In the letter, LaHood defended the Federal Transit Administration’s right to recoup the U.S. aid New Jersey spent on the aborted project.