The United States transportation department has on Tuesday threatened to cancel $929 million in federal funds which was awarded to California high-speed rail project by the former president Obama administration and is “actively exploring every legal option” in order to reclaim another $2.5 billion in the federal funds which was already spent on the project by California.
According to NPR news reports, California governor Gavin Newsom has last week said the state will scale back a planned %77.3 billion project that has faced a cost hike, management and delays, but will also be completing a link in the Central Valley between Bakersfield and Merced.
The department of transportation was accusing California’ officials of missing many deadlines tied to the fund appropriate for state’s project.
In a letter from the Federal Railroad Administration to the state High-Speed Rail Authority, the officials said it will terminate the fund effectively March 5.
It added sating that the agency is concerned about California changing its actual plan to “connect San Francisco in the north and Los Angeles and Anaheim in the south”.
US president Donald Trump said, “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.”
Trump also tweeted on Tuesday:
As I predicted, 16 states, led mostly by Open Border Democrats and the Radical Left, have filed a lawsuit in, of course, the 9th Circuit! California, the state that has wasted billions of dollars on their out of control Fast Train, with no hope of completion, seems in charge!
— Donald J. Trump (@realDonaldTrump) February 19, 2019
The failed Fast Train project in California, where the cost overruns are becoming world record setting, is hundreds of times more expensive than the desperately needed Wall!
— Donald J. Trump (@realDonaldTrump) February 19, 2019
While responding via tweet, Newsom said, “Fake news. We’re building high-speed rail, connecting the Central Valley and beyond. This is CA’s money, allocated by Congress for this project. We’re not giving it back. The train is leaving the station — better get on board! (Also, desperately searching for some wall $$??)”
In a statement, Newsom linked the Trump administration action to the leading 15 other states of California in challenging what he has called “the President’s farcical ‘national emergency’”, in order to obtain funds for Trump’s demand of a border at the border along with Mexico. Newsom said, “This is California’s money, and we are going to fight for it.”
The Obama administration has awarded the state $3.5 billion in 2010 and California voters in 2008 approved nearly $10 billion in bond proceeds.