State's Ethics Battle With Feds Hits Bump Judge supports U.S. view that New Jersey violates federal contracting rules, as other states watch
U.S. District Court Judge Stanley R. Chesler rejected New Jerseys push for a temporary restraining order to force FHWA to release about $350 million in current federal highway funds while the states Jan. 13 lawsuit challenging the ban proceeds in the courts (ENR 1/24 p. 16).
At a Jan. 21 hearing, Chesler supported the "very laudable motives" of a new executive order reforming New Jerseys so-called "pay-to-play" practice, but said he was "not persuaded" by the states claim that the new ethics rule would not impact road construction competition. Enacted last fall by outgoing Gov. James McGreevey, the order bans award of state contracts to firms that make certain levels of political contribution. Chesler called on the state to exempt federally funded contracts from the rule if it wanted funds released.