DOT Says NJ Must Repay $271M Spent On Tunnel Project

Law360, New York (May 2, 2011, 4:41 PM EDT) -- The U.S. Department of Transportation reached a final decision Friday in its dispute with New Jersey over a scrapped multibillion-dollar Hudson River tunnel plan, insisting the state pay back $271 million already spent on the project.

Secretary of Transportation Ray LaHood said in a letter to U.S. Sen. Frank R. Lautenberg, D-N.J., that New Jersey Gov. Chris Christie broke an agreement between the Federal Transit Administration and New Jersey Transit  when he unilaterally canceled the project, and that "the law is clear" in requiring repayment....
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