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New Jersey spends to avoid fed bill

Written by William C. Vantuono, Editor-in-Chief

New Jersey has spent more than $800,000 during the past two months in its legal battle to avoid reimbursing the U.S. Department of Transportation for funding originally intended for a trans-Hudson River rail tunnel.

The tunnel project, canceled last fall by Gov. Chris Christie after project cost estimates continued to rise, was granted $271 million by FTA, which has asked for the return of the funds once the project was terminated.

A spokesman for New Jersey Transit, which oversaw the tunnel project, says the state is building its case for why it need not reimburse the federal government.

Gov. Christie’s administration has hinted at using the federal funds for other projects, including road repair.

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