ARC Tunnel is Dead--Again UPDATED

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UPDATED 10:25 p.m. EST

(Alex Goldmark, Transportation Nation) An official familiar with the project confirms that NJ Governor Chris Christie is terminating the largest infrastructure project currently underway in the United States.

Christie first announced his intention on October 7th to halt progress on the ARC tunnel after cost projections were as much as $5 billion more than allocated funds. Federal officials had convinced Gov. Christie to take two weeks to reconsider his plans. A final decision from his office has been expected since Friday.

The Star-Ledger and AP report federal officials offered to change the terms of financing for the $8.7-$14 billion dollar ARC tunnel, but did not offer additional federal funds to the State of New Jersey which would have to pay for any cost overruns. That was, apparently, not enough to sway Gov. Christie who has received national support and attention, particularly from the Tea Party movement, for his "belt-tightening" stance on the ARC tunnel project.

The tunnel would have doubled commuter rail capacity between New Jersey and New York City.

The Governor's office is expected to make a formal announcement Wednesday.

Matthew Schuerman is following the story closely for our partner WNYC.