Feds Give Christie A Rebate For Stalled Tunnel Project

TRENTON (CBS) - It's still a lot of money that New Jersey owes for the commuter rail tunnel project scuttled by the governor.  But the feds are giving the state a bit of a break.

New Jersey will still have to put up the entire $271 million it was invoiced by the Federal Transit Administration for the partial construction that happened beneath the Hudson River before Governor Christie put his foot down.

But the state will get back nearly half the money -- $128 million -- a rebate, of sorts, from the US Department of Transportation.

That cash will go to a program that's administered by Washington but will be set aside for New Jersey to pay for other projects.

Governor Christie says concerns about huge budget overages for the tunnel gave him no choice but to kill it. He hired a law firm to fight the tab, which is still due on Christmas Eve. There's no word on if he'll continue to protest.

Reported by Ian Bush, KYW Newsradio