U.S. agency to cancel $929 million in California high-speed rail funds


(Worthy News) – The U.S. Transportation Department said on Tuesday it will cancel $929 million in federal funds awarded by the Obama administration for a California high-speed rail project and is “actively exploring every legal option” to seek the return of $2.5 billion the state has already received.

California Governor Gavin Newsom said last week the state will dramatically scale back a planned $77.3 billion high-speed rail project that has faced cost hikes, delays and management concerns, but will finish a smaller section of the line.

The Transportation Department’s Federal Railroad Administration said in a letter it wanted to halt funding because the state had “failed to make reasonable progress.” It cited Newsom’s announcement to scale back the project. [ Source: Reuters (Read More…) ]

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