New Jersey pauses work on new rail tunnels

New Jersey Transit has suspended further work on two new Hudson River commuter rail tunnels for least 30 days at it re-examines prospects for funding the $8.7 billion project. The Federal Transit Administration, through which federal funds flow, is reportedly concerned by the prospect of cost overruns.

In a written statement, New Jersey Transit Executive Director James Weinstein said: “The governor has made it clear to me that the project must stay on time and on budget. Anything short of that is unacceptable.”

The project has not won universal applause among transportation economists. But project advocates claim that it would come close to doubling trans-Hudson commuter rail capacity.