Sources familiar with ARC tunnel: It's dead

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(Andrea Bernstein, Transportation Nation) Three sources familiar with the $8.7 billion tunnel under the Hudson river from NJ, say, barring an unexpected, last-minute change of heart from Governor Chris Christie, the ARC transit tunnel under the Hudson river is dead. The sources say Christie will likely announce this week that he's restructuring NJ's portion of the money to go to roads. The FTA and the Port Authority will recoup their $3 billion each, though the Port's money will likely go into other regional projects.

Governor Christie's office, NJ Transit, the FTA, and the Port Authority of NY and NJ all decline comment.

More soon.