Trump derails $929M in funding for the bullet train, jeopardizing construction

Feds are looking to take back another $2.5B, but construction will proceed according to project officials

TRD LOS ANGELES /
May.May 17, 2019 03:00 PM
Gavin Newsom, Donald Trump and a rendering of the train
Gavin Newsom, Donald Trump and a rendering of the train

The California high-speed rail project may have already fallen off the tracks.

Following up on threats from March, the Trump administration has canceled a $929 million grant for construction of California’s bullet train in the Central Valley, and it is considering taking back other funds for the $77 billion-dollar project as well, the Los Angeles Times reported.

State officials said there will be no immediate changes to construction because the decision could be reversed in court, but the loss of funds could be disastrous for the project.

The Federal Railroad Administration cited California’s failures to accurately forecast development schedules or show that the project could be completed by 2022. Now, a decade after voters approved it, the full plan for a system, which would run from L.A. to San Francisco is at least $46 billion over budget and at least a decade behind schedule.

The federal government warned that it intended to kill the grant earlier this year, citing Gov. Gavin Newsom’s comments on the state not having a plan to complete the train system.

Newsom has vowed a battle in court over the cut funds.

The Federal Railroad Administration [FRA] also warned that officials are weighing options to recapture $2.5 billion from a grant that the state received and has already spent. The Times reported that the Transportation Department could withhold funds from other programs to recoup the money. The fFRA reportedly cut communications with the state rail authority in February. [LAT]Gregory Cornfield


Related Articles

arrow_forward_ios
Gavin Newsom signed bills to facilitate backyard home construction.

Yes, in my backyard: Brokers say new accessory dwelling unit law will reduce barriers to building

Gavin Newsom (Credit: Facebook and iStock)

Cost of Cali homebuilding is too damn high: City fees push up home prices, report finds

From left: Jason Segel, Donald Trump, Shaun White White, and Dr. Dre (Credit: Getty Images)

This week in celeb real estate: Trump leaves Beverly Hills, Dr. Dre buys in Pacific Palisades… and more

Donald Trump has sold his home in Beverly Hills (Credit: Getty Images, and Google Maps)

Trump Org sells off Beverly Hills home

Donald Trump and Sam Zell (Credit: Getty Images)

Zell on Trump: President’s tax documents showing massive losses “don’t tell much of a picture”

Newsom walks back plan to withhold dollars from cities that don’t meet housing goals

Newsom walks back plan to withhold dollars from cities that don’t meet housing goals

Newsom lists 4K-sf Marin County home after closing on 12K-sf mansion

Newsom lists 4K-sf Marin County home after closing on 12K-sf mansion

Newsom’s move to halt state’s high-speed rail project could affect future development

Newsom’s move to halt state’s high-speed rail project could affect future development

arrow_forward_ios