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The U.S. Department of Transportation (DOT) announced last week that it was canceling a $929 million grant to California for a high-speed rail project that was supposed to link San Francisco and Los Angeles. The announcement also said the department was “actively exploring every legal option” for getting back the $2.5 billion in federal funding that had already been contributed to the project.
California Gov. Gavin Newsom (D) said the week before that the state would be scaling back the rail project significantly.
“The project, as currently planned, would cost too much and take too long,” he said. “There’s been too little oversight and not enough transparency.”
But Newsom tied DOT’s announcement to California’s decision to file a lawsuit with 15 other states to block the Trump administration from using a national emergency declaration to fund a border wall on the U.S.-Mexico border.
“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’,” Newsom said in a statement. (FORTUNE, U.S. DEPARTMENT OF TRANSPORTATION, BLOOMBERG)