This is the story, as I heard it (and this is one of those third-hand things, so take it with the appropriate grain of salt, if necessary).
The first major limited access highways in the country were the turnpikes (NJ Turnpike, NY Thruway, PA Turnpike, etc.), which were toll-supported roads. In the fifties, the Interstate highway system was introduced. Under the interstate highway system, the federal government would pay 95% of the road construction costs, but the newly-constructed roads could not be toll roads (except for bridges and tunnels, I think).
When the interstate highways were laid out, they followed the existing turnpikes in some parts, but didn’t in others. For instance, the Pennsylvania Turnpike was designated I-76 for most of its length, but around Valley Forge, the I-76 designation went onto to the Schuylkill Expressway into Philadelphia, while the remainder of the Pennsylvaina Turnpike from east of Valley Forge to the NJ border was designated I-376. (I may have a vauge recollection that they switched this around sometime after I lived in Philly in the late '80s.)
Well, they had planned to do something similar for the New Jersey Turnpike with I-95. From Maryland and Delaware, I-95 runs west of the Delaware River, through Philadelphia and up to around Bristol, PA. There is a spur off of I-95 in Delaware which leads to the Delaware Memorial Bridge. When you cross the Delaware Bridge into New Jersey, you can either take the NJ Turnpike, which leads toward New York City, or I-295 which runs on the west side of the Delaware River to about Trenton.
Well, under the original Interstate Highway plan, I-95 would connect from where it now ends to the NJ Turnpike at Exit 10 (I-287, Metuchen, Perth Amboy), and the NJ Turnpike north of Exit would be continue as I-95. North of Exit 10, the Turnpike is currently designated as I-95, but it is not designated as such below Exit 10. On some maps (at least some older maps that I remember) there is a dashed line running across central New Jersey marked something like “I-95 proposed.”
Well, the Interstate system planners chose that route for I-95, but New Jersey did not agree. It had the Turnpike, and to create a free highway from Philadelphia to just south of New York would cut out the toll revenues that the Turnpike was generating from travellers from Philadelphia, Trenton and points south. So, New Jersey never put up the 5% of the cost of building the proposed I-95 from Pennsylvania to Exit 10, and it never got built.