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.
AP: NJ granted extension on tunnel tabLaw 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