Latest news with #CaliforniaHighSpeedRailAuthority
New Straits Times
4 days ago
- Business
- New Straits Times
California sues to challenge Trump's US$4bil high-speed rail clawback
WASHINGTON: California Governor Gavin Newsom on Thursday vowed to fight the "illegal" move by President Donald Trump's administration to cancel more than US$4 billion in federal grants for the state's ambitious but much-delayed high-speed rail project. A lawsuit challenging the rescission as an "arbitrary and capricious" abuse of authority was filed on Thursday in US District Court in Los Angeles by the California High Speed Rail Authority, which oversees the project. Trump's announcement on Wednesday added yet another hurdle to the 16-year effort to link Los Angeles and San Francisco by a three-hour train ride, a project that would deliver the fastest passenger rail service in the United States. Newsom said the move by Trump's Transportation Department came as the high-speed rail project was on the verge of laying track, with "active construction" under way on the initial 171-mile segment between Bakersfield and Merced in California's politically conservative Central Valley. The governor said termination of the grants amounted to "petty, political retribution, motivated by President Trump's personal animus toward California and the high-speed rail project, not the facts on the ground." The rail system, whose first US$10 billion bond issue was approved by California voters in 2008, has built more than 50 major railway structures, including bridges, overpasses and viaducts, and completed more than 60 miles (97 km) of guideway, the governor said. "California is putting all options on the table to fight this illegal action," Newsom said in a statement hours before the lawsuit was filed. The funding cancellation marked the latest confrontation between the Republican president and a Democratic governor widely viewed as a leading contender for his party's 2028 White House nomination. The two men have clashed over issues from transgender athletes and electric car rules to the use of National Guard troops during Los Angeles protests and even egg prices. 'LEGALLY BINDING AGREEMENTS' Ian Choudri, chief executive officer of the California High Speed Rail Authority, said that canceling the federal rail grants "without cause isn't just wrong, it's illegal." "These are legally binding agreements, and the authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said, adding that the program has created some 15,500 jobs. The Federal Railroad Administration issued a 315-page report last month finding the project was plagued by missed deadlines, budget shortfalls and questionable ridership projections. Choudri's rail authority has called those conclusions "misguided," saying they failed to reflect "substantial progress made to deliver high-speed rail in California." Transportation Secretary Sean Duffy chided the project for having failed to lay a single mile of track after spending US$15 billion over 16 years. But Choudri said installing track is a final step after land acquisition, environmental clearances and construction of supporting structures. Still, the project has faced its share of setbacks. The San Francisco-to-Los Angeles route was initially supposed to be completed by 2020 for US$33 billion. But the projected cost has since risen to US$89 billion to US$128 billion, and the start of service is estimated no sooner than 2030. As designed, the system would feature electric locomotives traveling at up to 220 mph (354 kph), powered entirely by renewable energy. Planners said it would eliminate 200 million miles driven by vehicles on highways. 'WE HAVE TO PULL THE PLUG' A second phase of the project called for extending the rail line north to Sacramento and south to San Diego. A separate project plans to link Los Angeles and Las Vegas with high-speed rail. Duffy said on Thursday that he was confident the Trump administration will defeat any lawsuit challenging the department's move. "We have to pull the plug," he told reporters outside the department's headquarters. In 2021, Democratic President Joe Biden restored a US$929 million grant for the project that Trump revoked in 2019 during his first term in office after calling the project a "disaster." State Assembly member Corey Jackson, a Southern California Democrat who has questioned the project's soaring costs, said Newsom's call to fight the funding cut could galvanize support for Democrats from organized labor and voters in the area where the first railway jobs would be created despite its Republican leanings. "The people of San Joaquin Valley will now know that their economic engine is coming from the Democratic Party," Jackson said. "This is also a message to our labor friends. Democrats continue to deliver these high-paying jobs. Republicans continue to try to kill them." Rufus Jeffris, senior vice president of the Bay Area Council, a business-sponsored policy group in the San Francisco area, pointed to economic benefits associated with high-speed rail and called the funding cut unfortunate.
India Today
4 days ago
- Business
- India Today
Newsom vows legal fight as Trump admin pulls $4 billion from high-speed rail project
California Governor Gavin Newsom on Thursday vowed to fight an "illegal" move by President Donald Trump's administration to cancel USD 4 billion in federal grants for the state's ambitious but much-delayed high-speed rail announcement on Wednesday added yet another hurdle to the 16-year effort to link Los Angeles and San Francisco by a three-hour train ride, a project that would deliver the fastest passenger rail service in the United said the move by Trump's Transportation Department came as the high-speed rail project was on the verge of laying track, with "active construction" under way on the initial 171-mile segment between Bakersfield and Merced in California's politically conservative Central Valley. The rail system, whose first USD 10 billion bond issue was approved by California voters in 2008, has built more than 50 major railway structures, including bridges, overpasses and viaducts, and completed more than 60 miles (97 km) of Attorney General Rob Bonta told reporters on Thursday he was "poised to take imminent action" on the issue, indicating the dispute would end up in court."California is putting all options on the table to fight this illegal action," Newsom said in a funding cancellation marked the latest confrontation between the Republican president and a Democratic governor widely viewed as a leading contender for his party's 2028 White House two men have clashed over issues from transgender athletes and electric car rules to the use of National Guard troops during Los Angeles protests and even egg prices.'LEGALLY BINDING AGREEMENTS'Ian Choudri, chief executive officer of the California High Speed Rail Authority, said that canceling the federal rail grants "without cause isn't just wrong, it's illegal.""These are legally binding agreements, and the authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said, adding that the program has created some 15,500 Federal Railroad Administration issued a 315-page report last month finding the project was plagued by missed deadlines, budget shortfalls and questionable ridership rail authority has called those conclusions "misguided," saying they failed to reflect "substantial progress made to deliver high-speed rail in California."Transportation Secretary Sean Duffy chided the project for having failed to lay a single mile of track after spending USD 15 billion over 16 years. But Choudri said installing track is a final step after land acquisition, environmental clearances and construction of supporting the project has faced its share of San Francisco-to-Los Angeles route was initially supposed to be completed by 2020 for USD 33 billion. But the projected cost has since risen to USD 89 billion to USD 128 billion, and the start of service is estimated no sooner than designed, the system would feature electric locomotives traveling at up to 220 miles per hour (354 kph), powered entirely by renewable energy. Planners said it would eliminate 200 million miles driven by vehicles on highways.'WE HAVE TO PULL THE PLUG'A second phase of the project called for extending the rail line north to Sacramento and south to San Diego. A separate project plans to link Los Angeles and Las Vegas with high-speed said on Thursday that he was confident the Trump administration will defeat any lawsuit challenging the department's move."We have to pull the plug," he told reporters outside the department's 2021, Democratic President Joe Biden restored a USD 929 million grant for the project that Trump revoked in 2019 during his first term in office after calling the project a "disaster."State Assembly member Corey Jackson, a Southern California Democrat who has questioned the project's soaring costs, said Newsom's call to fight the funding cut could galvanize support for Democrats from organized labor and voters in the area where the first railway jobs would be created despite its Republican people of San Joaquin Valley will now know that their economic engine is coming from the Democratic Party," Jackson said. "This is also a message to our labor friends. Democrats continue to deliver these high-paying jobs. Republicans continue to try to kill them."Rufus Jeffris, senior vice president of the Bay Area Council, a business-sponsored policy group in the San Francisco area, pointed to economic benefits associated with high-speed rail and called the funding cut unfortunate.- Ends
Reuters
4 days ago
- Politics
- Reuters
California sues to challenge Trump's $4 billion high-speed rail clawback
WASHINGTON, July 17 (Reuters) - California Governor Gavin Newsom on Thursday vowed to fight the "illegal" move by President Donald Trump's administration to cancel more than $4 billion in federal grants for the state's ambitious but much-delayed high-speed rail project. A lawsuit challenging the rescission as an "arbitrary and capricious" abuse of authority was filed on Thursday in U.S. District Court in Los Angeles by the California High Speed Rail Authority, which oversees the project. Trump's announcement on Wednesday added yet another hurdle to the 16-year effort to link Los Angeles and San Francisco by a three-hour train ride, a project that would deliver the fastest passenger rail service in the United States. Newsom said the move by Trump's Transportation Department came as the high-speed rail project was on the verge of laying track, with "active construction" under way on the initial 171-mile segment between Bakersfield and Merced in California's politically conservative Central Valley. The governor said termination of the grants amounted to "petty, political retribution, motivated by President Trump's personal animus toward California and the high-speed rail project, not the facts on the ground." The rail system, whose first $10 billion bond issue was approved by California voters in 2008, has built more than 50 major railway structures, including bridges, overpasses and viaducts, and completed more than 60 miles (97 km) of guideway, the governor said. "California is putting all options on the table to fight this illegal action," Newsom said in a statement hours before the lawsuit was filed. The funding cancellation marked the latest confrontation between the Republican president and a Democratic governor widely viewed as a leading contender for his party's 2028 White House nomination. The two men have clashed over issues from transgender athletes and electric car rules to the use of National Guard troops during Los Angeles protests and even egg prices. Ian Choudri, chief executive officer of the California High Speed Rail Authority, said that canceling the federal rail grants "without cause isn't just wrong, it's illegal." "These are legally binding agreements, and the authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said, adding that the program has created some 15,500 jobs. The Federal Railroad Administration issued a 315-page report last month finding the project was plagued by missed deadlines, budget shortfalls and questionable ridership projections. Choudri's rail authority has called those conclusions "misguided," saying they failed to reflect "substantial progress made to deliver high-speed rail in California." Transportation Secretary Sean Duffy chided the project for having failed to lay a single mile of track after spending $15 billion over 16 years. But Choudri said installing track is a final step after land acquisition, environmental clearances and construction of supporting structures. Still, the project has faced its share of setbacks. The San Francisco-to-Los Angeles route was initially supposed to be completed by 2020 for $33 billion. But the projected cost has since risen to $89 billion to $128 billion, and the start of service is estimated no sooner than 2030. As designed, the system would feature electric locomotives traveling at up to 220 mph (354 kph), powered entirely by renewable energy. Planners said it would eliminate 200 million miles driven by vehicles on highways. A second phase of the project called for extending the rail line north to Sacramento and south to San Diego. A separate project plans to link Los Angeles and Las Vegas with high-speed rail. Duffy said on Thursday that he was confident the Trump administration will defeat any lawsuit challenging the department's move. "We have to pull the plug," he told reporters outside the department's headquarters. In 2021, Democratic President Joe Biden restored a $929 million grant for the project that Trump revoked in 2019 during his first term in office after calling the project a "disaster." State Assembly member Corey Jackson, a Southern California Democrat who has questioned the project's soaring costs, said Newsom's call to fight the funding cut could galvanize support for Democrats from organized labor and voters in the area where the first railway jobs would be created despite its Republican leanings. "The people of San Joaquin Valley will now know that their economic engine is coming from the Democratic Party," Jackson said. "This is also a message to our labor friends. Democrats continue to deliver these high-paying jobs. Republicans continue to try to kill them." Rufus Jeffris, senior vice president of the Bay Area Council, a business-sponsored policy group in the San Francisco area, pointed to economic benefits associated with high-speed rail and called the funding cut unfortunate.
Forbes
4 days ago
- Business
- Forbes
California Sues Trump To Hang Onto $4 Billion Of Bullet Train Funds
California's high-speed rail system is under construction in the Central Valley, but needs tens of billions of dollars to connect to San Francisco and Los Angeles. California High-Speed Rail Authority California Gov. Gavin Newsom said the state is suing the Trump Administration after Transportation Secretary Sean Duffy announced his agency is clawing back $4 billion of federal funds previously awarded for high-speed rail construction, the latest challenge for the country's costliest infrastructure project. Duffy this week said the decision to take back funds awarded by the Federal Railroad Administration during the Obama and Biden Administrations came after a compliance review that determined the California High-Speed Rail Authority 'simply cannot meet its obligations under the grant agreement.' He also cited the state's failure to identify a sustainable source of funds to cover the full cost of connecting San Francisco to Los Angeles, estimated to be as high as $135 billion, as justification for canceling the grants. Newsom's office said its suit alleges that the cancellation of agreements is 'political retribution, motivated by President Trump's animus toward California and the high-speed rail project, not by facts on the ground.' Currently, construction work is underway on a 119-mile section of the state's Central Valley, between the cities of Fresno and Bakersfield. Ian Choudri, the bullet train's new CEO and a rail and infrastructure veteran, is developing a new business plan intended to lower costs, accelerate construction and add private sector partners. 'This is just a heartless attack on the Central Valley that will put real jobs and livelihoods on the line,' Newsom said in an emailed statement. 'We're suing to stop Trump from derailing America's only high-speed rail actively under construction.' During his first term, Trump took back a $900 million award to the state, citing similar reasons. President Joe Biden restored the grant and provided an additional $3.1 billion for the project from funds set aside for high-speed rail in the Bipartisan Infrastructure Law. Brightline West, a private rail project intended to connect Las Vegas to suburban Los Angeles, also got $3 billion of federal rail funds and is raising at least $9 billion more. It's doing prep work for the future line that will run through the Mojave Desert, but hasn't started heavy construction. The U.S. currently has no high-speed trains capable of hitting speeds of 200 miles per hour or more, unlike dozens of nations, including Japan, China, South Korea, France, Germany and Spain. California's project, approved by voters in 2008 with a $10 billion bond for initial construction costs, had an estimated price tag of $45 billion–long before the routing had been determined and the land acquired. The slow, tedious work of purchasing hundreds of miles of property, along with extensive environmental reviews, added more than a decade to its construction timeline and caused its cost to triple. Though track hasn't been laid, construction employing more than 15,000 people is active on a 171-mile section of the future line, with over 50 bridges, overpasses and viaducts built and 60 miles of guideway completed, according to the Governor's office. 'Canceling these grants without cause isn't just wrong–it's illegal,' Choudri said in a statement. 'These are legally binding agreements and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025.' More From Forbes Forbes California Bullet Train At Risk As Trump Administration Opens Funding Review By Alan Ohnsman Forbes Trump Could Derail California High-Speed Rail Project, Despite Billions Spent By Alan Ohnsman Forbes Brightline Raising $2.5 Billion Of Private Funds For Vegas-To-L.A. Bullet Train By Alan Ohnsman
5 days ago
- Business
Trump administration pulls $4B in federal funding for California's bullet train project
SACRAMENTO, Calif. -- The Trump administration revoked federal funding for California's high-speed rail project on Wednesday, intensifying uncertainty about how the state will make good on its long-delayed promise of building a bullet train to shuttle riders between San Francisco and Los Angeles. The U.S. Transportation Department announced it was pulling back $4 billion in funding for the project, weeks after signaling it would do so. Overall, a little less than a quarter of the project's funding has come from the federal government. The rest has come from the state, mainly through a voter-approved bond and money from its cap-and-trade program. President Donald Trump and Transportation Secretary Sean Duffy both have slammed the project as a 'train to nowhere." 'The Railroad we were promised still does not exist, and never will," Trump wrote on Truth Social. "This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.' The loss marks the latest blow to California by the Trump administration, which has blocked a first-in-the-nation rule to phase out the sale of new gas-powered cars, launched investigations into university admission policies and threatened to pull funding over transgender girls being allowed to compete in girls sports. It also comes as rail project leaders are seeking private investment to help pay for its estimated price tag of more than $100 billion. Voters first approved the project in 2008 and it was supposed to be operating this decade. But cost estimates have consistently grown and its timeline pushed back. State officials are now focused on building a 119-mile (192-kilometer) stretch connecting the Central Valley cities of Bakersfield and Merced that is set to be operating by 2033. The California High Speed Rail Authority is slated to release a report this summer to state lawmakers with an updated funding plan and timeline for the project. Authority officials wrote in a letter earlier this month that the Trump administration made up its mind about revoking funding before thoroughly reviewing the project. They noted that more than 50 structures have already been built, including underpasses, viaducts and bridges to separate the rail line from roadways for safety. 'Canceling these grants without cause isn't just wrong — it's illegal,' authority CEO Ian Choudri said in a statement Wednesday. 'These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025." The authority has asked potential private investors to express their interest by the end of the month. Democratic Gov. Gavin Newsom said the state will keep 'all options on the table' to fight the revocation of federal funds. 'Trump wants to hand China the future and abandon the Central Valley. We won't let him," he said in a statement. The state has 'no viable plan' to complete even the Central Valley segment, said Drew Feeley, acting administrator of the transportation department's Federal Railroad Administration, in a report released last month. He called the project a 'story of broken promises' and a waste of taxpayer dollars. California Democrats also have criticized project spending. Democratic Assemblymember Rebecca Bauer-Kahan said at a budget hearing earlier this year that her constituents 'overwhelmingly believe' high-speed rail spending 'has been irresponsible.' Newsom plans to extend the state's cap-and-trade program, a key funding source for the project which is set to expire at the end of 2030, through 2045. The program sets a declining limit on the total amount of greenhouse gas emissions large emitters can release. Those polluters can buy allowances from the state needed to pollute, and about 45% of that money goes into what's known as the Greenhouse Gas Reduction Fund, according to the Independent Emissions Market Advisory Committee, a group of experts that reviews the program. The fund helps pay for climate and transportation projects, including high-speed rail. The bullet train project receives 25% of the money from the fund, which ends up being a little less or a little more than $1 billion annually, depending on the year. Newsom in May proposed guaranteeing $1 billion a year for the project from the fund, but lawmakers have not agreed to that.
