Feds Withholding $2 Billion in Funding for CA Transit

The U.S Department of Labor is holding up the distribution of billions of dollars in transit funding destined for San Diego, Sacramento, Los Angeles and other California cities due to a new state pension law's impact on transit workers.

"The federal government is withholding about $2 billion from transit agencies across California, including $268 million earmarked for bus, rail and street projects at the Los Angeles County Metropolitan Transportation Authority [Metro]," reports Dan Weikel. "The money has been held back since December because the U.S. Department of Labor contends that a new state pension law violates the Federal Transit Act in the way it treats unionized workers of transportation agencies."

"If the dispute is not resolved soon," he adds, "Metro officials say that $3.2 billion in grants and federal loans could be withheld from such projects as the subway extension to the Westside and the regional rail connector in downtown Los Angeles. They added that those projects, which have the potential to employ an estimated 43,000 workers, could be delayed as a result."

Full Story: Legal dispute prompts feds to withhold $2 billion for transit

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