Batory told Kelly that the FRA intends to terminate its Cooperative Agreement (FR-HSR-0118-12-01-01) with the CHSRA effective March 5, 2019. After the termination, it will cancel the full $928.42 million in federal funding for the California high-speed rail project under the Agreement. The agency is also “exploring all available legal options” to recover the federal funds granted under the Agreement.
In his letter, Batory wrote, “FRA has determined that CHSRA has materially failed to comply with the terms of the Agreement and has failed to make reasonable progress on the Project…substantially endangering substantial performance.”
In addition, he said California’s decision to significantly change its plans for its high-speed rail system reinforces the FRA’s concern about CHSRA’s previous performance. Batory noted Newsom’s new proposal in his State of the State address is a “significant retreat” from California’s original vision and commitment for the project.
Newsom slams the FRA’s action as “political retribution” by Trump
Newsom immediately released a response to FRA’s action. According to him, “It’s no coincidence that the Administration’s threat comes 24 hours after California led 16 states in challenging the President’s farcical “national emergency.” The President even tied the two issues together in a tweet this morning. This is clear political retribution by President Trump, and we won’t sit idly by. This is California’s money, and we are going to fight for it.
