At the request of the Federal Transit Administration, New Jersey officials increased the estimated cost of a new passenger-rail tunnel that will run between Newark and Manhattan to $8.7 billion, a $1.1 billion boost from the project's earlier cost estimate.

The adjustment will give the new tunnel - called the Access to the Region's Core, or ARC tunnel - additional room for potential increases in construction costs and interest rates as the project progresses over the next decade.

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