REPORT: Trump administration says its taking money back from California over dead-end rail project


The Trump administration is planning to take back nearly $1 billion in grants to build California’s high-speed rail network and is “exploring all available legal options” to seek the return of an additional $2.5 billion in funds after the state’s governor said he didn’t see a path to complete the entire project from San Francisco to Los Angeles.

The letter from Ronald Batory, administrator of the Federal Railroad Administration, to California High-Speed Rail Authority CEO Brian Kelly on Tuesday said the agency intended to cancel a $929 million grant for the project on March 5, significantly escalating tensions between the Trump administration and California and threatening to throw the troubled project into further doubt.

The article goes on to state the following:

“FRA has determined that CHSRA has materially failed to comply with the terms of the Agreement and has failed to make reasonable progress on the Project,” Batory wrote.

The letter comes one week after California Gov. Gavin Newsom announced during his State of the State address that he would focus on completing only the Central Valley segment of the project, which is estimated to cost more than $77 billion and is years behind schedule.

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