Trump administration cancels nearly $1 billion in funding for California high-speed rail

Rebecca Morin
Updated
The Federal Railroad Administration will de-allocate $928.6 million in grant funding for the high-speed rail project.

The Trump administration revoked Thursday nearly $1 billion in federal funding for California's high-speed rail project — the latest move as tensions between the White House and California continue to escalate.

According to a statement from the Federal Railroad Administration, California “failed to make reasonable progress” on the project. The agency also cited the state's decision no longer to pursue plans for the rail service to connect San Francisco and Los Angeles.

The FRA will de-allocate $928.6 million for high-speed rail project which was originally projected to cost $77.3 billion but is now estimated at roughly $20 billion due to its substantially reduced footprint.

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In addition, the FRA said it will “consider all options” to get $2.5 billion returned that was already given to the state for the project.

California Gov. Gavin Newsom announced in February that due to cost hikes, delays and management concerns, the state will reduce the size of the project.

The initial plan, which was set to be fully operational by 2033, would have built a 520-mile system from Los Angeles to San Francisco that would have allowed trains to travel up to 220 miles per hour.

However, the project will now only provide rall service between Merced and Bakerfield, both of which are in California's Central Valley. The high-speed rail will be 119-miles long. Following Newsom's announcement, the FRA threatened to revoke the more than $900 billion in funding for the project.

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The FRA's decision is the latest hit from President Donald Trump. California has repeatedly sued the Trump administration for its immigration policies. Earlier this year, California joined a multi-state lawsuit challenging a national emergency declared by the president to free up funds for a wall along the U.S.-Mexico border.

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This article originally appeared on USA TODAY: Trump administration cancels nearly $1 billion in funding for California high-speed rail