The Donald Trump administration has moved to cancel an additional $929 million that was earmarked for California’s failed high-speed rail project.
The move marks the latest salvo between new Governor Gavin Newsom’s administration in California and the federal government.
The Trump administration is also looking into recovering additional wasted tax dollars spent on the disastrous high-speed rail project.
According to the Los Angeles Times:
The Transportation Department also announced it was “actively exploring every legal option to seek the return from California of $2.5 billion in federal funds.” It’s unclear whether it has the legal authority to do so, and California would likely oppose such a move.
In a short statement, federal officials said California had “failed to make reasonable progress” on the project and questioned whether it could be completed on the schedule in the grants.
Last week, Newsom announced that the massively failed rail project needed to be “rethought.”
“But let’s be real,” Newsom said. “The current project, as planned, would cost too much and, respectfully, take too long. There’s been too little oversight and not enough transparency,” Newsom added.
A “rethinking” is an understatement.
“Ten years after voters approved it, the project is $44 billion over budget and 13 years behind schedule,” the Times reported.
But as soon as Newsom made his address on the issue, the Trump administration called for the billions already given to California should be returned.
In any case, the battle rages on.
Follow Warner Todd Huston on Twitter @warnerthuston.