Access to the Region's Core (ARC) was a proposed commuter-rail project to increase passenger service capacity on New Jersey Transit (NJT) between Secaucus Junction in New Jersey and Manhattan in New York City. New infrastructure would have included new trackage, a new rail yard, and a tunnel under the Hudson River. A new station adjacent to New York Penn Station was to be constructed as running more trains into the current station was deemed unfeasible. An estimated budget for the project was $8.7 billion. Construction began in mid-2009 and the project was slated for completion in 2018, but it was cancelled in October 2010 by Chris Christie, the governor of New Jersey, who cited the possibility of cost overruns and the state's lack of funds. Six hundred million dollars had been spent on the project. The decision remains controversial.The project was initiated after studies conducted in the 1990s determined that new rail tunnels under the Hudson River were the best approach to address transportation needs for the New York metropolitan area. At times called the Trans Hudson Express Tunnel, THE Tunnel or the Mass Transit Tunnel, it eventually became known by the name of a Major Investment Study, and received endorsements from both New Jersey and New York governors.After its cancellation, the federal government demanded repayment of funding received by NJT for the project. The Christie administration engaged a law firm to present its arguments for non-payment, which were subsequently rejected by the Federal Transit Administration. An agreement was eventually reached in which part of the funds would be returned while other monies would be used on transit-related projects.
Soon after work was halted, there was speculation that the previously discussed idea of the New York City Transit Authority's 7 Subway Extension continuing into New Jersey would be revived, but was later scuttled. In February 2011, Amtrak announced the Gateway Project, a plan to build a right of way and new tunnels from Newark Penn Station to New York Penn Station, passing through Secaucus Junction, which would be shared with NJT trains.Christie later directed PANYNJ funding toward New Jersey road projects. A March 2012 Government Accountability Office investigated the decision to cancel the project and provided comments that questioned Christie's rationale. Manhattan District Attorney Cyrus Vance, Jr. and Securities and Exchange Commission conducted investigations into possible misuse of PANYNJ funds towards projects involving roadways possibly not under the agency's purview, such as the Pulaski Skyway. Eventually $400,000 in fines were paid.