UPDATED 6:58 AM PT — Friday, May 17, 2019
President Trump is following through on his promise to pull federal funds away from the stalled California high-speed rail project.
On Thursday, the Federal Railroad Administration announced it has terminated its $929 million agreement with California, and is asking for the return of $2.5 billion in stimulus funding.
The agency said California repeatedly failed to comply with the terms of the agreement, and has failed to make progress on the project.
The move comes after the state’s governor — Gavin Newsom — said he would alter the scope of the plan to avoid giving the money up to President Trump.
The high-speed rail project has been in the works for a decade, and has stalled due to cost over-runs.