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Feds Make NJ Foot The Bill For Canceled Tunnel Project

(CBS) - New Jersey has gotten a big bill from the feds for canceling the expensive project that would have put a second commuter rail tunnel under the Hudson River to New York City. 

The invoice from the Federal Transit Administration demands more than $271 million by Christmas Eve for Governor Chris Christie's decision to back out of the construction.  Early work already had begun.

State senate president, Gloucester County Democrat Steve Sweeney says, "Pretty much walk over to the river, and just, like, throw the money in it.  It's gone.  It's gone, and we have nothing to show for it."

Sweeney says the money could've gone for some good -- a partial payment for the tunnel, perhaps, or to shore up the state's crumbling roads and bridges.

The governor has said he killed the multi-billion dollar project because of cost overruns. Those themselves could have been in the billions.

His spokesman won't say whether the state will cough up the cash or dispute the debt.

Reported by Ian Bush, KYW Newsradio

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