Money meant to build a new rail tunnel under the Hudson River might be used to purchase new train cars.
Gov. Chris Christie scrapped the tunnel project in October because he feared cost overruns. NJ Transit has hired a law firm to fight a $271 million bill to repay federal funds spent on the project.
The Record newspaper reports NJ Transit chief planner Rich Roberts told the authority the new rail cars have already been ordered and are due to arrive in early 2012.
Roberts said multiple sources of funding were available had the tunnel money not been freed up.