Federal Government Releases ARC Tunnel Estimates: Projects Up to $4 Billion Overruns

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The federal government has publicly revised its estimate for how much the Hudson River tunnel might cost. This comes two weeks after New Jersey Governor Chris Christie cancelled the planned train tunnel citing federal estimates that the project could cost up to $5 billion over budget.

At first, the Obama administration wouldn't confirm that number -- until Friday.

Transportation Secretary Ray LaHood issued a statement saying the project could reach $12.7 billion in total, or $4 billion over the current budget.

In addition, New Jersey is still liable to redo a nearby bridge, for another $800 million. LaHood says he believes the price can be kept under $10 billion if the parties work on it.

Christie's office says the governor will take the weekend to think about resuming the project.