SACRAMENTO—The Trump administration cancelled nearly $1 billion in federal money for California’s high-speed rail project on Thursday, May 16.
The Federal Railroad Administration issued the following statement on Thursday:
“FRA finds that the [California High-Speed Rail Authority] CHSRA has repeatedly failed to comply with the terms of the FY10 Agreement and has failed to make reasonable progress on the Project. 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. FRA continues to consider all options regarding the return of $2.5 billion in American Recovery and Reinvestment Act (ARRA) funds awarded to CHSRA.”
California officials have not commented on the FRA’s move. The Trump administration has not yet released a statement at this time which is moving closer to end funding after California Governor Gavin Newsom stated in February that the state would scale back the planned $77.3 billion high-speed rail project.
The reason for scaling back is cost hikes, delays, and management concerns, but they are still aiming to complete a smaller section for the rail project. Newsom indicated that the state would complete a 119-mile high-speed link between Merced and Bakersfield in the state’s Central Valley.