The Trump administration wants to cut off $929 million in federal funding grants to California’s ambitious high-speed rail project and, at the same time, is “actively exploring” every legal option to take back an additional $2.5 billion in federal grant funds that had already been given to the state.
But the railway project—which was first approved by California voters in 2008—has become controversial after having faced repeated delays, management concerns, and cost increases. Trump’s administration argued on Feb. 19 that the state did not provide matching dollars, which are required, and said they could not fully complete construction by the 2022 deadline.
Turning to Twitter, Trump urged California on Feb. 20 to return the money and lambasted recent reports that said the state was planning to reduce the scope of their railway project, which has been under construction for years.
Meanwhile, California’s Democratic governor, Gavin Newsom, refused to return the state’s money.
“This is clear political retribution by President Trump, and we won’t sit idly by,” he said in a statement. “This is California’s money, and we are going to fight for it.”
In his first State of the State address to lawmakers on Feb. 12, Newsom said California will dramatically scale back on the project. He said they would still finish a smaller section.
Newsom told lawmakers that the state will finish a 119-mile high-speed rail link between Merced and Bakersfield in the state’s Central Valley, which was met with derision on social media.
“I know that some critics will say this is a ‘train to nowhere,’ “ Newsom said during his speech. ”But that’s wrong and offensive.”
Merced had a population of more than 83,000 as of 2017 while Bakersfield had a population of about 380,000. San Francisco and Los Angeles have a combined population of nearly 5 million.
In March 2018, the state estimated the costs to jump by $13 billion to $77 billion and warned that it could reach as high as $98.1 billion.
The Feb. 19 letter from the U.S. Department of Transportation said Newsom’s comments at the address further pushed the Trump administration’s concerns.
“Governor Newsom presented a new proposal that represents a significant retreat from the State’s initial vision and commitment and frustrates the purpose for which Federal funding was awarded,” the letter said.