Details are now just emerging about a proposal from NYC Mayor Bloomberg to further extend the IRT #7 line from the West Side station by a planned, massive new development, Hudson Yards. Cheaper than a commuter rail tunnel, it would serve NJ Transit.
Nov 22, 2010 The New York Times - N.Y. / Region
Amtrak may work with NJ Transit to build a second set of tunnels (previously known as ARC that was scuttled by NJ Gov. Christie) under the Hudson River, possibly to connect with New York's Penn Station, according to an Amtrak VP and NJ Transit.
Nov 9, 2010 Asbury Park Press
Time will tell whether this was a shrewd political move, saving the state billions of dollars, or a monumental failure of judgment. NJ must now repay the federal government $270 million; he forfeits $6 billion in transit, but prevents overrun costs.
Oct 28, 2010 Bloomberg News via Crain's New York Business