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N.J. May Lose Billions If Hudson Tunnel Is Canceled

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N.J. Gov. Chris Christie (file)

(Photo by Hiroko Masuike/Getty Images)

TRENTON, N.J. (CBS 2) — The Hudson Rail Tunnel project may not be buried after all.

Governor Chris Christie agreed to give NJ Transit and the Transportation Department two weeks to come up with options to save the project after meeting with Transportation Secretary Ray LaHood.

Canceling the project would cost New Jersey billions in federal aide. On Thursday, Christie ended the $8.7 billion project, saying cost overruns would hurt the Garden State.

“The governor agreed to come to the table so they could finally discuss things.  Good judgment finally prevailed,” said Sen. Frank Lautenberg (D-N.J.)

The federal government might also ask for a refund of some of the $600 million already spent.

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