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Yesterday, New Jersey Gov. Chris Christie accepted the recommendation of the ARC Project Executive Committee to terminate the Access to the Region’s Core (ARC) project based on a 30-day review that determined the project would “substantially exceed its current budget,” officials from the governor’s office said in a prepared statement.

Based on calculations by the Federal Transit Administration and New Jersey Transit, the project's final budget is expected to exceed $11 billion and could surpass $14 billion vs. the project’s current budget of $8.7 billion, officials said.

“While we recognize the importance and value of a cross-Hudson transportation improvement project, the current economic climate in New Jersey simply does not allow for this project to continue considering the substantial additional costs that are required,” said New Jersey Transit Executive Director Jim Weinstein. “The ARC project is just not a financially viable project that we can responsibly move forward.”

Added Christie: “I have made a pledge to the people of New Jersey that on my watch I will not allow taxpayers to fund projects that run over budget with no clear way of how these costs will be paid for. Considering the unprecedented fiscal and economic climate our state is facing, it is completely unthinkable to borrow more money and leave taxpayers responsible for billions in cost overruns.”

The ARC project includes two new tunnels under the Hudson River, new tracks between Seacaucus Junction and New York's Penn Station, and a new rail station beneath 34th Street in Manhattan. The project would enable NJ Transit to double rail service into Manhattan, free up capacity for Amtrak, and reduce travel times and crowding on trains at Penn Station.