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.
California has been forced to cancel the massive bullet train project after having spent and wasted many billions of dollars. They owe the Federal Government three and a half billion dollars. We want that money back now. Whole project is a “green” disaster!
— Donald J. Trump (@realDonaldTrump) February 14, 2019
In addition, the Department announced it is actively exploring every legal option to seek the return from California of $2.5 billion in Federal funds FRA previously granted for this now-defunct project. https://t.co/xTS2ky5MUx
— TransportationGov (@USDOT) February 19, 2019
.@USDOTFRA announces it intends to cancel $929 million in Federal grant funds yet to be paid for the California High-Speed Rail project envisioned to connect the L.A. Basin to the San Francisco Bay Area. https://t.co/xTS2ky5MUx
— TransportationGov (@USDOT) February 19, 2019
Where California high-speed rail careened off track https://t.co/Zaj8JfPKkb pic.twitter.com/aZ9HmM6Z8H
— CityLab (@CityLab) February 18, 2019
The Trump Administration Says It’s Taking Back Nearly $1 Billion For California’s High-Speed Rail Project https://t.co/Qap8jPaayU
— BuzzFeed (@BuzzFeed) February 20, 2019
Yes! “Trump administration to cancel funding for California’s high-speed rail project https://t.co/G8zT9W5SWx via @WSJ”
— Jason Miller (@JasonMillerinDC) February 20, 2019
Trump administration tells California it’s backing out of $929 million grant for high-speed rail project and “is actively exploring every legal option” to get back the $2.5 billion already given to the effort.
Points to Gov. Newsom putting new limits on the project’s extent pic.twitter.com/Sgu7yWwb5d— Sarah D. Wire (@sarahdwire) February 19, 2019
NEW: The Transportation Department announced it intends to cancel $929 million in federal grant funds for California’s scaled-back high-speed rail project.
California Gov. Gavin Newsom is calling it “clear political retribution by President Trump.” https://t.co/7GLkFHcTeW
— Axios (@axios) February 20, 2019
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