The United States cancels $ 929 million in high-speed train funds in California after the rejection of the call

WASHINGTON (Reuters) – The Trump administration said on Thursday it was officially canceling $ 929 million worth of funding for California's high-speed rail program after it rejected a state appeal.

The Federal Railroad Administration (FRA), the US railway control authority, announced Thursday that it had canceled funding granted under a 2010 agreement after stating that the state had "failed to comply several times" and "had not progressed reasonably in the project".

In a statement, FRA said it still considered "all options" for the return of $ 2.5 billion of federal funds already received by the state.

This decision is the latest salvo in a battle going on between the administration of US President Donald Trump and California on a range of issues such as immigration, vehicle emission standards and Internet policy.

The largest US state has repeatedly sued the Trump administration and officials expect the state to bring a lawsuit against railway financing.

The Trump administration has decided to end funding after California Governor Gavin Newsom announced in February that the state would cut the planned $ 77.3 billion high-speed rail project after cost increases , delays and management problems, but would complete a smaller slice.

In a statement released Thursday, Newsom called the action "illegal and direct assault against California, our green infrastructure and the thousands of Central Valley workers who are building this project".

He added that "the Trump administration was trying to retaliate politically on our state" and promised to seize the courts to protect "the money from California, affected by Congress".

The traffic-jammed state planned to build a 520-mile (837-km) system during the first phase, which would allow trains to run at a maximum speed of 220 km / h (354 km / h). ) between Los Angeles and San Francisco and start running at full speed. from here 2033.

According to Newsom, in February, the state would purchase a 120-kilometer high-speed link between Merced and Bakersfield in the central valley of the state.

US Transportation Secretary Elaine Chao, who traveled to FRA overseas, said in February that the California rail project had been significantly reduced "is a classic example of bait and change. .. We also have the right to claim these 2.5 billion dollars. "

The state said in March that the end of the funding would "cause massive disruption, disruption and waste, damaging the region and jeopardizing the future of the high-speed train in California".

The Obama administration granted $ 3.5 billion to California in 2010 and its constituents in 2008 approved a product of nearly $ 10 billion in bonds.

By March 2018, the state's projected project costs had jumped $ 13 billion to $ 77 billion, and costs could reach $ 98.1 billion.