Do you wingers ever stop screwing up?
Col. Bluster owes each of us about a buck; due on XMas Eve. Is this a great country, or what?
U.S. Seeks Tunnel Refund From N.J.
The federal government said New Jersey has less than a month to pay back more than $271 million from a canceled Hudson River tunnel project. The U.S. threatened to charge interest, report the state to credit and ratings agencies, and send the debt to the Department of Justice for collection.
The Federal Transit Administration, in its second letter demanding repayment, said NJ Transit can challenge the amount or create an installment plan to reimburse the federal government for money spent on Access to the Region’s Core, or ARC, before New Jersey pulled the plug on the project.
A spokesman for New Jersey Gov. Chris Christie was not immediately available for comment Monday. But the Christie administration has questioned whether the bill needs to be repaid, and NJ Transit Executive Director James Weinstein described it as “difference of opinions.”
Christie scrapped the tunnel project in October, saying the state could not pay the escalating price tag and rebuffing in-person pleas from U.S. Transportation Secretary Ray LaHood.
Earlier this year, estimates put the project at $8.7 billion, with $3 billion paid for by the federal government, $3 billion from the Port Authority of New York and New Jersey, and the balance paid by New Jersey. Updated federal estimates put the total cost of the project between $9.8 billion and $12.7 billion, prompting Christie to review and ultimately cancel the project.
On Nov. 8, the Federal Transit Administration sent the first letter to New Jersey asking for immediate repayment of the money, which was used for expenses such as engineering, design and property acquisition, according to NJ Transit. The second letter, dated Nov. 24, said the state has 30 days to pay the debt in full before the FTA begins charging interest. The initial interest rate, set by the Treasury, is 1%, but it would climb to a 6% interest rate after 90 days, the letter said.
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