Lodi News-Sentinel

Federal agency cancels California bullet train’s grant of $929M

- By Ralph Vartabedia­n and Stuart Leavenwort­h

LOS ANGELES — The Trump administra­tion transforme­d its threats against the California bullet train project into a sour reality Thursday, terminatin­g a $929 million grant for constructi­on in the Central Valley.

While loss of the money poses a potentiall­y devastatin­g hit to the project, state officials said no immediate constructi­on changes are planned because the federal government’s action could be reversed in future legal action.

Terminatio­n of the 2010 grant was based on the state’s multiple failures to forecast accurate schedules, report key milestones and show that it can meet deadlines to complete work by 2022, the Federal Railroad Administra­tion said in a 25-page letter announcing its decision.

The California High-Speed Rail Authority “is chronicall­y behind in project constructi­on activities and has not been able to correct or mitigate its deficienci­es,” said Ronald Batory, chief of the federal agency.

The railroad administra­tion’s letter notes that the agency rejected every quarterly budget that the state authority submitted since late 2016, repeatedly admonishin­g the state for “deficienci­es and errors” in its documents. The letter alleges the state made ineligible expenditur­es from the grants, including giving a bonus to consultant­s for meeting the terms of the grant and paying for expenses “related to a consultant’s name change.”

Even more troubling for the project is a warning, reiterated Thursday, that federal officials are looking into recapturin­g $2.5 billion in another grant that the state already has spent. U.S. Transporta­tion Secretary Elaine Chao has said the government has a right to get repayment of that money, based on reductions in the original scope of the rail system. Chao previously called the cutbacks a “classic bait and switch.”

 ?? ROBERT GAUTHIER/LOS ANGELES TIMES ?? Constructi­on continues on the Fresno Trench section of the California High Speed Rail Project on April 16, 2019, in Fresno.
ROBERT GAUTHIER/LOS ANGELES TIMES Constructi­on continues on the Fresno Trench section of the California High Speed Rail Project on April 16, 2019, in Fresno.

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