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Posted at 12:45 PM ET, 11/29/2010

N.J. has 30 days to pay tunnel bill

By Associated Press and Staff Reports

New Jersey owes the federal government $271.1 million for canceling a rail tunnel connecting New Jersey and New York.

An invoice from the Federal Transit Administration's chief financial officer to NJ Transit's executive director was sent Nov. 24 and is due within 30 days. The Associated Press obtained a copy of the correspondence on Monday.

It's money the government wants New Jersey to repay for work done on the Hudson River tunnel before Gov. Chris Christie terminated the project. The notification is formal demand for payment and follows a warning letter earlier this month estimating the charges.

NJ Transit Executive Director Jim Weinstein said earlier this month that the state hadn't determined if it would have to pay any money back.

The $8.7 billion project to construct a rail tunnel between New Jersey and New York was 15 years in the making when Christie stopped it, saying the state could not afford it. The state's share of the project was estimated at more than $2.7 billion. The federal government and the Port Authority of New York and New Jersey were each contributing $3 billion.

Rail officials have said the tunnel is part of an overall plan to help alleviate train congestion in the Northeast Corridor. Amtrak said earlier this month that is was looking into reviving the project and using it for high-speed rail.

By Associated Press and Staff Reports  | November 29, 2010; 12:45 PM ET
Categories:  Amtrak, Transportation News  
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I think that Gov. Christie should give the Federal Transit Administration parts of Newark in lieu of cash. That'll teach them to mess around with NJ!

Posted by: WashingtonDame | November 29, 2010 4:03 PM | Report abuse

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