Trump Strips California of $930 Million in “High-Speed Rail” Funding

As reported by DailyCaller

The Trump administration will terminate its agreement with California to fund the state’s struggling high-speed rail project, the Federal Railroad Administration (FRA) said Thursday.

In a letter to state officials, Administrator Ronald Batory said FRA would deobligate the $928.6 million set aside for the California High-Speed Rail Authority (CHSRA) under a 2010 agreement. The agency will also continue to examine recouping the $2.5 billion in stimulus funds already spent on the rail program, according to a copy of Batory’s letter obtained by The Daily Caller News Foundation.

“FRA finds that CHSRA has repeatedly failed to comply with the terms of the FY10 Agreement and has failed to make reasonable progress on the Project,” FRA said in an emailed statement.

“Additionally, California has abandoned its original vision of a high-speed passenger rail service connecting San Francisco and Los Angeles, which was essential to its applications for FRA grant funding,” the agency said.

The decision to withdraw federal rail funding is likely to heighten tensions between the Trump administration and California.

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Dubbed the “train to nowhere,” Gov. Gavin Newsom announced in February he shelved plans to complete the entire high-speed rail line that voters approved in 2008. The project was meant to connect major urban areas from San Diego to San Francisco by high-speed rail.

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