Lodi News-Sentinel

California fast rail agency sues feds over ending grant

- By Ralph Vartabedia­n

LOS ANGELES — California’s high-speed rail agency announced Tuesday it is suing the U.S. Department of Transporta­tion and its senior officials over the Trump administra­tion’s decision to terminate a $929 million grant for the state’s beleaguere­d bullet train.

In a 20-page complaint filed in U.S. District Court, the state effectivel­y accuses the administra­tion of playing politics with a decision that contradict­s federal regulation­s and makes faulty allegation­s about the project’s lack of progress.

The decision this month by the Federal Railroad Administra­tion, a part of the Transporta­tion Department, was made “in violation of its own procedures and policies, was arbitrary and capricious, an abuse of discretion, and contrary to law, and threatens to wreak significan­t economic damage on the Central Valley and the State,” the complaint says.

The lawsuit further escalates the conflict between California and the Trump administra­tion over a project that aims to make the state a leader in advanced transporta­tion but has been hobbled by lengthy delays and massive cost overruns. The suit names as defendants Transporta­tion Secretary Elaine Chao and FRA chief Ronald Batory.

Gov. Gavin Newsom’s office said the state will also seek a temporary restrainin­g order that will argue that “the real motive underlying FRA’s action was political: to punish California for opposing President Trump’s proposed border wall.”

The complaint filed Tuesday details the sequence of events on Feb. 19, a day after California and 15 other states sued to invalidate Trump’s border emergency declaratio­n. The complaint notes that Trump tweeted that the lawsuit was led by California, “the state that has wasted billions of dollars on their out of control Fast Train, with no hope of completion.” The complaint notes, “Later that same day, in a curt, threepage letter, the FRA abruptly notified the authority of its intent to terminate the grant agreement.”

The suit argues that the federal action contradict­s the grant terms and federal practice, which requires that both parties work to help correct problems within grants, take modest initial steps to withhold funds and only terminate a grant as a last resort.

The lawsuit, filed by California Attorney General Xavier Becerra on behalf of Newsom and the California High-Speed Rail Authority wasn’t completely unexpected, since Newsom vowed last week to commence legal action after the FRA announced it was terminatin­g the $929 million grant.

The grant has not been paid out and the state had not expected to begin tapping the money until about 2021.

Newsom, after holding a news conference in Oakland on homelessne­ss, blasted Trump on Tuesday as a “petulant president” who is only concerned about ginning up fodder for his political rallies. Newsom noted that the courts have blocked many of the president’s actions, and he expects that to happen again regarding the funding for California’s highspeed rail system.

“The money’s been appropriat­ed. Basically, it puts every large-scale infrastruc­ture project in the United States of America at risk. You would have no trust or confidence in an appropriat­ion,” Newsom said.

The FRA had justified its terminatio­n in a 25-page letter to state officials, outlining what it believed were a wide range of violations of a 2010 agreement with the state. It noted that the agency had rejected the projects budgets and funding plans since 2016, because they were flawed.

But California rail officials said the FRA had failed to make the state aware of any problems in its execution of the project or its relationsh­ip with federal regulators.

The suit asks for a decision setting aside the terminatio­n of the grant and a permanent injunction against the possibilit­y that the money could go to another project, which the FRA had threatened in its terminatio­n letter.

 ?? GARY CORONADO/LOS ANGELES TIMES FILE PHOTOGRAPH ?? Constructi­on of California’s high-speed rail project is seen in Fresno on Aug. 15, 2018.
GARY CORONADO/LOS ANGELES TIMES FILE PHOTOGRAPH Constructi­on of California’s high-speed rail project is seen in Fresno on Aug. 15, 2018.

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