NEWARK - (AP) - New Jersey Transit has approved a settlementthat will pay the federal government $95 million for the HudsonRiver rail project that Gov. Chris Christie scrapped nearly a yearago.

The Federal Transit Administration had wanted New Jersey torepay $271 million.

The money to pay the debt will come from insurance.

Christie killed the second rail tunnel between New Jersey andNew York because he feared cost overruns of up to $5 billion.

Under terms of the settlement, New Jersey must spend more than$128 million in federal funds on approved transit-related projectsand cannot divert the money to other projects.

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