Traffic lane closures created days of gridlock in Fort Lee, N.J., whose Democratic mayor didn't endorse Republican Gov. Chris Christie.
Port Authority spokesman Steve Coleman says the agency informed David Wildstein on Friday that covering his legal expenses wasn't warranted under its bylaws.
Those bylaws generally call for current and former employees to get their legal bills covered for job-related activities, but not if there's misconduct or fraud.
The Port Authority's law department is reviewing a request from ex-deputy director Bill Baroni.
Both resigned amid an investigation into the lane closures.
Wildstein's lawyer hasn't returned a phone call.
Christie has called his staff's behavior "stupid."
