Trump administration to cancel $929 million in California high-speed rail fundingLos Angeles Times, Feb 19, 2019, Ralph Vartabedian and Matthew Ormseth
The fate of California’s high-speed rail project was cast into further doubt Tuesday when the federal government announced plans to cancel $929 million in grant funds, a move U.S. officials linked to violations of the grant agreement but some view as political payback. The Transportation Department also said it was “actively exploring every legal option†to get back an additional $2.5-billion grant that is being used to finance the construction of 119 miles of rail line in the Central Valley.
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Ronald Batory, chief of the Federal Railroad Administration, the transportation agency that made the grants in 2009 and 2010, laid out a lengthy legal argument Tuesday for why the state was out of compliance with the grant agreement. Batory said in a three-page letter to California High-Speed Rail Authority Chief Executive Brian Kelly that the state “has materially failed to comply with the terms of the agreement and has failed to make reasonable progress on the project.â€
Batory alleged that the state had failed to spend required matching funds, falling short by $100 million as of December. He argued that it will fail to complete the Central Valley construction by a 2022 deadline required by the grant. Batory also said the state has not submitted required financial information — such as reports on what has been delivered to date — that would allow federal regulators to oversee the grants. It also has failed to take corrective actions after regulators raised concerns in 2017 and 2018.
The letter also cited Newsom’s State of the State speech last week that outlined a plan to build a limited operating segment between Merced and Bakersfield as a “significant retreat from the state’s initial vision and commitment.â€
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http://www.latimes.com/local/lanow/la-me-high-speed-rail-20190219-story.html
