FEDERAL FUNDS COULD BE WITHHELD FROM NEW JERSEY OVER ARC TUNNEL PROJECT

The federal government is demanding the money it says New Jersey owes. Gov. Chris Christie cancelled the ARC Tunnel project, which had $271 million in federal aid attached to it. Transportation Secretary Ray LaHood says New Jersey owes the money back to the federal government. Gov. Chris Christie has said the state will not repay the money. LaHood hinted that federal aid could be withheld from New Jersey until payment is received. Also, 1% percent interest is beginning to be collect on the unpaid potion.