Trump administration terminates federal grant for high-speed rail project
FRESNO, Calif. (KFSN) -- The Trump administration has sent a notice to California High-Speed Rail Authority announcing the termination of a $929 million federal grant intended for the project, effective March 5.
The U.S. Department of Transportation wrote they are "actively exploring every legal option" to get back the $2.5 billion in federal grant funds already given to the state.
The Trump administration argues California hasn't provided required matching dollars and can't complete work by a 2022 deadline.
The notice comes a week after Governor Gavin Newsom's State of the State address where he announced future construction would only focus on the section between Merced and Bakersfield.
President Trump tweeted following the Governor's address that the American people "wanted their money back."
RELATED: President Trump on California High-Speed Rail: 'We want that money back now'
Newsom pledged to continue environmental work on the full line, which is required to keep the federal money.
Gov. Gavin Newsom responded saying that the cancellation was political retribution for the state's lawsuit against President Trump's declaration of a national emergency to build a wall on the U.S.-Mexico border.
"It's no coincidence that the Administration's threat comes 24 hours after California led 16 states in challenging the President's farcical "national emergency." The President even tied the two issues together in a tweet this morning. This is clear political retribution by President Trump, and we won't sit idly by. This is California's money, and we are going to fight for it."
RELATED: California, 15 other states sue President Trump over emergency declaration for border wall
Congress nearly a decade ago approved the $929 million that Trump wants to cancel. The state has not started spending that money. But it has already spent the extra $2.5 billion that Trump now wants back. It's unclear if the federal government can demand that money back before the 2022 deadline.
READ: Full letter from Department of Transportation
(The Associated Press contributed to this report.)
