The New Jersey Monitor has obtained letters in which the state canceled funding for a planned French art museum in the heart of Jersey City after concluding that the project was no longer feasible.

The state's economic development agency sent a letter to the president of the Centre Pompidou in Paris on Saturday telling him that the North American location the museum plans to open in Jersey City's Journal Square will not receive the tens of millions in aid promised by New Jersey. Lawmakers have reallocated state funds previously earmarked for the Pompidou outpost in Jersey City, a state official wrote in a separate letter to the head of the Jersey City agency overseeing the project.

“Due to the ongoing supply chain impacts of COVID and numerous global conflicts, rising costs, an unbridgeable operating gap and the corresponding financial burden this places on New Jersey taxpayers, the legislature has withdrawn financial support, so we must conclude that this project is unfortunately no longer viable,” Economic Development Authority Director Tim Sullivan wrote in a letter to Laurent Le Bon, the president of the Pompidou, on Saturday.

In the other letter, sent Saturday by Michael Greco, deputy executive director of the State Department, to Jersey City Redevelopment Agency head Diana Jeffrey, Greco demanded that the agency repay $6 million that the State Department allocated for the project but has not yet spent. The $24 million that lawmakers earmarked in the 2024 budget and the $18 million that was part of the 2022 budget were returned to the state's general fund, the letter said.

“Due to the actions of the legislature, federal support is no longer available for this project,” Greco wrote.

The state's decision to reallocate funds intended for the museum, called Centre Pompidou x Jersey City, is no surprise. The city's mayor, Steve Fulop, claims that New Jersey officials deprived Pompidou of the means to take revenge on him for withdrawing his support for First Lady Tammy Murphy. now failed bid for the US Senate.

In a statement Saturday afternoon, Jersey City officials called the situation “truly unfortunate” and said they would continue discussions with partners abroad to “see if there is a way forward.”

“As we said earlier this year, absolutely nothing has changed in this project compared to what the governor and first lady originally knew and what they are now referring to, and there is plenty of documentation to support our position. The only thing that has changed is the politics in New Jersey and the failed candidacy of the first lady,” said Kimberly Wallace-Scalcione, spokeswoman for the mayor.

Fulop is seeks the Democratic nomination for governor Next year.

Representatives of the Pompidou did not immediately respond to a request for comment.

The Economic Development Authority has admitted that it has doubts about the financial viability of the Jersey City Pompidou project, citing a 19 million dollar hole in the museum's operating budget. Jersey City had hoped for a $2 million annual subsidy for the museum, but that won't happen, Greco's letter said.

Jersey City has until August 1 to repay the $6 million provided by the State Department, the letter continues.

The Centre Pompidou x Jersey City plan has long criticized by Republicanswho opposed using state funds for it. While Sullivan and Fulop traded barbs about the funding last month, Republican lawmakers wrote a letter to the state demanding that the funds be directed to a “more responsible purpose.”

The museum was originally scheduled to open in early 2024, but was pushed back to 2027. When city officials announced plans for the museum in 2021, they said it would revitalize Journal Square, transforming it into a center for arts, entertainment and tourism.

In the letter to the Pompidou president, Sullivan praised the staff for their collaboration and said he hoped to further strengthen the “economic and cultural ties” between France and New Jersey, adding that he was disappointed with the outcome.

“Although the door is now closed for this particular project, we would like to explore opportunities to open new doors together with our partners in France in the coming years,” he said.