TRENTON — Gov. Chris Christie today killed the controversial, multi-billion dollar Hudson River commuter train tunnel — America’s largest public works project — ending for now the two-decade-old quest to expand train capacity between New Jersey and midtown Manhattan. 
 
 “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,” said the governor. “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. 
 
 Christie said the tunnel project costs “far more than New Jersey taxpayers can afford and the only prudent move is to end this project.” 
 
 James Weinstein, the executive director of NJ Transit, in a statement, said while the state recognized 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.” 
 
 The governor said he has directed the state’s transportation officials to explore other approaches to modernize and expand rail capacity into New York. “However, any future project must recognize the regional and national scale of such an effort and work within the scope of the State’s current fiscal and economic realities,” he said. 
 
 Christie called a 30-day temporary halt in September on new tunnel construction, as behind-the-scenes cost projections suggested the tunnel project costs would swell more than $1 billion above the $8.7 million proposed price tag. He said he didn’t want the New Jersey version of Boston’s "Big Dig" — a tunnel mega-project that saw the final tally climb to nearly ten times the original $2.8 billion estimate. 
 
 At the same time, the governor was confronted with the state’s nearly bankrupt Transportation Trust Fund, which pays for road and bridge repairs and transit services. Christie had vowed not to increase the gas tax to pay for the fund, saying that drivers already had to contend with New Jersey Turnpike toll hikes and state residents already have been taxed too much, and there has been growing speculation that Christie will shift the state’s share of the tunnel project into the trust fund. 
 
 The federal government has earmarked $3 billion for the tunnel project, with another $3 billion being funded by the Port Authority of New York and New Jersey, and the final $2.7 billion coming from the state of New Jersey. Christie said the federal commitment is capped at $3 billion and required that any costs above $8.7 billion be absorbed by the State of New Jersey. According to the governor, cost overruns are estimated to be in a range from more than $2 billion to over $5 billion. ||||| Many reports that Chris Christie is about to scuttle the second rail tunnel under the Hudson. If so, it’s arguably the worst policy decision ever made by the government of New Jersey — and that’s saying a lot. 
 
 The story seems to be that Christie wants to divert the funds to road and bridge repair; but in so doing he would (a) lose huge matching funds from the Port Authority and the Feds (b) delay indefinitely a project NJ needs desperately ASAP. He could avoid these consequences by raising gasoline taxes. But no, taxes must never be raised, no matter what the tradeoffs. 
 
 And it’s a social bad too: now is very much the time when we should be ramping up infrastructure spending, not cutting it. 
 
 Awesome. 
 
 And yes, if anyone should mention it, I am a resident of New Jersey who often visits Manhattan, and therefore has a personal stake in this project. You got a problem with that?
– New Jersey Gov. Chris Christie today killed a two-decade-old plan for a commuter train tunnel between Manhattan and New Jersey. He predicted that the project, which the Star-Ledger says would have been the biggest public works project in US history, would have ballooned way beyond the projected $8.7 billion cost, making it "completely unthinkable." This, declares Paul Krugman, "is arguably the worst policy decision ever made by the government of New Jersey—and that’s saying a lot." In his New York Times blog, Krugman says New Jersey needs this "desperately ASAP" and that Christie could have raised gasoline taxes to pay for it. "But no, taxes must never be raised, no matter what the tradeoffs," he scoffs. Plus, this is precisely the time to increase spending on infrastructure. In full disclosure mode, Krugman notes that he's a New Jersey resident who goes to Manhattan frequently "and therefore has a personal stake" in the matter. "You got a problem with that?"