The US Department of Transportation says it is exploring legal options to claw back $2.5 billion from California in federal funds which have already been spent on the ill-fated statewide high-speed rail system, according to the New York Times.
The Trump administration is also canceling a $929 million grant which was allocated to the California High-Speed Rail Authority detailed in a letter from DOT, just one week after California Governor Newsom announced that the project had been derailed by cost overruns and numerous delays.
The decision to yank the grant money and claw back the billions in federal funds comes one day after California filed a lawsuit along with 15 other states challenging President Trump's emergency declaration on the border.
One day after California canceled the project, President Trump tweeted of California: "They owe the Federal Government three and a half billion dollars. We want that money back now. Whole project is a"Green" disaster!".
On Tuesday, Trump hit back - disparaging the way California wasted the rail money, as well as the state's decision to spearhead the national emergency lawsuit.
There may be hope for California's $929 million as former chairman of the board of the high-speed rail project, Dan Richard, noted that the federal notice reads that the Trump administration intends to terminate the agreement, rather than saying it was canceling it outright.
The high speed rail project was going to be former California Governor Jerry Brown's legacy.
https://www.zerohedge.com/news/2019-02-20/trump-administration-demands-25-billion-repayment-californias-high-speed-rail-fail
The Trump administration is also canceling a $929 million grant which was allocated to the California High-Speed Rail Authority detailed in a letter from DOT, just one week after California Governor Newsom announced that the project had been derailed by cost overruns and numerous delays.
The decision to yank the grant money and claw back the billions in federal funds comes one day after California filed a lawsuit along with 15 other states challenging President Trump's emergency declaration on the border.
One day after California canceled the project, President Trump tweeted of California: "They owe the Federal Government three and a half billion dollars. We want that money back now. Whole project is a"Green" disaster!".
On Tuesday, Trump hit back - disparaging the way California wasted the rail money, as well as the state's decision to spearhead the national emergency lawsuit.
There may be hope for California's $929 million as former chairman of the board of the high-speed rail project, Dan Richard, noted that the federal notice reads that the Trump administration intends to terminate the agreement, rather than saying it was canceling it outright.
The high speed rail project was going to be former California Governor Jerry Brown's legacy.
https://www.zerohedge.com/news/2019-02-20/trump-administration-demands-25-billion-repayment-californias-high-speed-rail-fail
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