AP: NJ granted extension on tunnel tab

(AP) - The U.S. Transportation Department hasgranted New Jersey an extension of just over two weeks on the $271million it owes for a scrapped rail

TRENTON - (AP) - The U.S. Transportation Department hasgranted New Jersey an extension of just over two weeks on the $271million it owes for a scrapped rail tunnel project. The extension was granted in a letter dated Monday to lawyersfor the law firm New Jersey Transit hired to fight the debt. TheAssociated Press obtained the letter on Tuesday. Gov. Chris Christie killed the $8.7 billion tunnel project inOctober because of possible cost overruns. The federal governmentthen demanded repayment of money already spent on the project. Transportation Secretary Ray LaHood said recently that NewJersey would be credited $128 million to use on other projects ifit pays the debt in full. The law firm now has until Jan. 10 to submit a response. Law firm hired to fight Hudson River tunnel tabNJ to challenge feds over $271M tunnel billChristie sticks with decision to scrap tunnelGov. Christie takes time to reconsider ARC TunnelChristie delays decision on tunnelNJ senators rally support in last-ditch effort to save tunnelStudy supports new Hudson River rail tunnel Gov. Christie agrees to reconsider NJ-Manhattan rail tunnel Christie scraps plans for rail tunnel between NJ, Manhattan Gov. Christie to review rail tunnel costs Funding for rail tunnel to link NJ, NY up for debate Democratic leaders assail Gov. Christie on tunnel stoppage Amtrak considers new Hudson River tunnel

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