The project comes with a $14.5 billion price tag.
It was a controversial move when Gov. Chris Christie put the brakes on a new tunnel project saying it was too costly. Now, a new federal report claims the project may not have cost as much as Christie had predicted.
The settlement will pay the federal government $95 million for the Hudson River rail project that Gov. Chris Christie scrapped nearly a year ago.
Governor Chris Christie’s legal battle with the federal government over whether the state owes $271 million for abandoning a train tunnel under the Hudson has so far cost the state more than a $1 million.
Christie abandoned the project last fall, citing escalating costs. He noted potential overruns of $2 billion to $5 billion, which he said the state couldn’t afford.
The Federal Transit Administration has ruled that NJ must repay the feds the entire $271 million it spent on early design and engineering work for a NJ-NY train tunnel that Gov. Chris Christie scrapped.
State Senate President Stephen Sweeney worries that New Jersey could lose out on $128 million the federal government offered to credit back to help ease traffic jams once the state pays in full.
Citing the state’s inability to pay for cost overruns on the rail tunnel project, Gov. Christie said Thursday he would not put taxpayers on a “never-ending hook.”