Trump Threatens To Cancel California's $929 Million High-Speed Rail Grant

Last week, Newsom said he planned to scale back plans for the rail project, which would have linked Los Angeles to San Francisco.

California Governor Gavin Newsom accused the Trump administration of retaliating against the state over its lawsuit seeking to stop construction of a wall on the Mexican border.

Disputes over President Donald Trump's border wall and California's bullet train are intensifying the feud between the White House and the nation's most populous state.

The U.S. Transportation Department on Tuesday said it intends to terminate an agreement that would have granted almost $929 million in federal funds for California's ambitious and controversial high-speed rail project.

California Democratic gubernatorial candidate Gavin Newsom speaks after being elected governor of the state during an election night party in Los Angeles, California, U.S. November 6, 2018.

California's leaders have offered their state as a "counter-proposal" to Trump's America - a demonstration that progressive policies and regulations can go hand-in-hand with economic growth and well-being.

"I come in the spirit of true collaboration and desire to help support these efforts not just financially, but also to create the conditions where we're having a different conversation", Newsom said at the LBCC event. 'This is clear political retribution by President Trump, and we won't sit idly by'.

The agreement does not require the California High-Speed Rail Authority to build trains for the track. The price of the rail has drastically increased, from an originally estimated $45 billion to $77 billion. In addition, FRA "is actively exploring every legal option to seek the return from California of $2·5bn in Federal funds FRA previously granted for this now defunct project". This is federal money, of which California has wasted enough on its farcical high-speed rail project. It can take the money back, for example, if the grantee fails to make "adequate progress" or "fails to complete the project or one of its tasks" or if the state doesn't meet its matching fund requirements.If the federal government decides to take the money back, it doesn't have to wait for California to write a check. Jerry Brown. The lawsuit is California's 46th against the Trump administration.

The train project has faced repeated cost overruns and delays since California voters approved it in 2008. Instead, he declared that they'd build the first Central Valley link and then research and work out other ways to connect that portion of the train heading north and south.

It says the Transportation Department determined that the state would not complete the project by the scheduled date in 2022.

The Trump administration is planning to withdraw nearly $1 billion in pending funding for California's long-awaited high-speed train project, citing cost overruns and inefficiencies.

Tuesday's comments won't be the last; the administration has given California until March 5 to formally respond.

  • Joey Payne