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Lawmaker: NJ Could Lose More Federal Money Over Canceled Tunnel Project

TRENTON, NJ (CBS) – You know that tunnel under the Hudson River that New Jersey Governor Chris Christie decided not to build because it was too expensive? An escalating war of words over returning federal funds already spent on the canceled project could cost the state even more money in the eyes of the leader of the opposition in Trenton.

The feds want their $271 million back. Governor Christie has filed a formal appeal of that decision, insisting projected cost overruns made the project too expensive.

That leads Senate President Steve Sweeney to ponder, “If the federal government decides that they want all their money back and the governor just chose not to cooperate, are we going to lose more federal money?”

Washington DC has offered $128 million in what amount to credits if New Jersey pays back the ARC tunnel debt in full. If not, Sweeney worries that New Jersey won’t just lose the credits. The feds, he worries, will just take the money from pending projects through a process called “administrative offset.”

He’s asking Christie to at least tell people what Washington-based lawyers he’s hired have told him of the likelihood the state will win in the end.

Reported by David Madden, KYW Newsradio 1060

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  • itz

    Who needs federal funding for anything. New Jersey should just print their own IOU’s, just like money. Cut all of the ties to the mainland, sever the bridges, the turnpike and all connections to the rest of the country and float out to sea.

    As an island nation, New Jersey can then declare war of the Unired Stes, lose and collect foreign aid, wiping out all debts.

  • Steve

    Yes, Now with him back in the state, He can balance the huge deficit left by all the preceding governors & state representatives both Democrat & Republican alike. Why raise the credit ceiling and add to the misery already caused. He better get to work, shame he has to clean up before digging into new items, But hey , We keep allowing this to happen by voting party lines.

  • jim

    65K to make change. Unbelievable. That can’t be, can it? Should be minimum wage job.

  • Debra Traub

    Okay, so the federal money for schools he threw away with both hands is a non-issue to him, but guess where he is trying to take money from to fix his mistakes???? OUR CHILDREN AND THEIR EDUCATION. He has been out of the state more often than any Governor in recent history promotion himself and his agenda. Perhaps he should stay home and actually do some work for the state.

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