Trump administration holds off redirecting California's high-speed rail money
Source: Reuters
POLITICS MAY 22, 2019 / 3:44 PM / UPDATED AN HOUR AGO
Trump administration holds off redirecting California's high-speed rail money
David Shepardson
3 MIN READ
(Reuters) - The Trump administration on Wednesday agreed not to immediately redirect nearly $1 billion it is withholding from Californias high-speed rail project, one of several disputes between Republican Trump and the Democratic-controlled state.
In exchange, the state dropped its plans to ask a court to at least temporarily halt any planned shift in funds, California Governor Gavin Newsoms office said.
On Tuesday, California sued in U.S. District Court in San Francisco to challenge the administrations decision to withhold $929 million awarded in 2010 for a bullet train project hobbled by extensive delays and rising costs. The administration had rejected the states administrative appeal.
The lawsuit argued that President Donald Trump has overt hostility to California and its opposition to his initiative, so far unrealized, to build a wall along the U.S.-Mexico border. The Republican administration and Californias Democrats have also clashed over immigration and air quality standards.
The Federal Railroad Administration (FRA) cannot re-obligate Californias funding to another state without first initiating a formal process of issuing a notice, according to a joint court filing from the state and U.S. Justice Department.
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https://www.reuters.com/article/us-california-rail/trump-administration-holds-off-redirecting-californias-high-speed-rail-money-idUSKCN1SS2OG