The California rail authority delivered a sharp rebuttal to the Trump administration, saying its threat to cancel and rescind $3.5 billion in grants for the state bullet train project is “rash and unlawful.”
, according to grant experts. It is rare, they said, for the federal government to terminate a grant because a state or local agency has not met the precise terms of the agreement. And they could not recall any instance in which grants as large as those to the California bullet train were taken back.
The rebuttal letters, written by rail authority Chief Executive Brian Kelly, assert that Newsom’s plan does not change the purpose of the project and in fact increases the amount of work that will be done in the Central Valley by extending construction south to Bakersfield and north to Merced. Kelly also noted that federal officials made 450 payments under the initial $2.5-billion grant to the state after determining it had met the conditions and that the second grant had the same terms.
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