On Tuesday, the State of New Jersey filed a claim with the FTA stating that the Access to the Region's Core project was canceled for reasons beyond its control--primarily "severe financial stress"--and the state should, therefore, not be required to pay back the FTA. Furthermore, the filing asserts, the FTA has overstated the amount of New Starts funds New Jersey received by over $45 million. Governor Christie officially canceled the ARC project in October 2010, citing potential cost overruns.
The filing states:
"Repaying any amount would be deeply counterproductive and harmful to the citizens and taxpayers of NJ...The work produced with these funds has enduring value to future projects. Moreover, compelling NJT to repay these funds will force NJT to cancel projects it can afford to undertake to reduce congestion, enhance the condition of critical infrastructure and create needed jobs."