New Jersey Transit will suspend for 30 days new contracts and work on a new passenger-rail tunnel that will run under the Hudson River between New Jersey and Manhattan, as the federal government believes the project may cost an additional $1 billion.

Current work will continue on the tunnel, called the Access to the Region’s Core, or ARC, while NJTransit officials review the $8.7 billion project. To help fund the tunnel, the federal government and the Port Authority of New York and New Jersey will contribute $3 billion each, while New Jersey’s share is $2.7 billion.

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