Trump Administration Targets California High-Speed Rail After Border Wall Lawsuit

The Trump administration has canceled a nearly $1 billion grant assigned to the California high-speed rail project and is attempting to get the state to return the $2.5 billion it has already spent on the $77 billion project.

3 minute read

February 21, 2019, 11:00 AM PST

By Irvin Dawid


Border

nirvanaonwheels / Shutterstock

President Trump, like most Republicans, has never been a fan of high-speed rail and the California project, linking Northern and Southern California via the Central Valley, in particular. 

On Feb. 12, Gov. Gavin Newsom (D), the successor to Gov. Jerry Brown (D), the state's long-time champion of high-speed rail, announced during his first state-of-the-state address that "there simply isn’t a path to get from Sacramento to San Diego, let alone from San Francisco to LA. I wish there were. However, we do have the capacity to complete a high-speed rail link between Merced and Bakersfield."

"Late Tuesday [Feb. 19], a Trump administration official pointed to Mr. Newsom’s remarks as an indication that the project was too costly and would never be constructed as planned,'" report Annie Karni and Jennifer Medina for The New York Times. 

Given that acknowledgment, the official said, the administration had a responsibility to taxpayers to “cancel the financial support for this boondoggle.”

Also on Tuesday, the Federal Railroad Administration issued this statement canceling the one remaining grant it has yet to award to California and announced the administration's intent to recoup previously awarded grants:

The U.S. Department of Transportation announced today that the Federal Railroad Administration (FRA) intends to cancel $929 million in Federal grant funds yet to be paid for the California High-Speed Rail project envisioned to connect the L.A. Basin to the San Francisco Bay Area.  

In addition, the Department announced it is actively exploring every legal option to seek the return from California of $2.5 billion in Federal funds FRA previously granted for this now-defunct project.

Suspicious timing 

Both the Times and Gov. Newsom acknowledged that the Trump administration's actions to cancel and recoup the grants came one day after California filed a lawsuit with 15 other states challenging President Trump’s emergency declaration on the border on Feb. 15.

“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,’” Mr. Newsom said in a statement. “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.”

The president didn't even attempt to hide the relationship between the rail project and the border wall by linking the two in his tweet Tuesday morning.

Litigation likely

"It is unclear whether the federal government has the legal authority to withhold the grant from California, and state officials are likely to challenge the move in court," write Karni and Medina.

A 3-page letter [pdf] penned by Ronald L. Batory, Administrator of the Federal Railroad Administration, to Brian Kelly, CEO of the California High-Speed Rail Authority, indicating his intent "to de-obligate the full $928,620,000" grant appears formidable to this correspondent. He states that the Authority "has failed to provide FRA with timely and satisfactory reports."

Criticism was also targeted against the Authority in a state audit issued in November noting that their “flawed decision making and poor contract management have contributed to billions in cost overruns and delays.”

An analysis of Batory's letter by Kurtis Alexander and Alexei Koseff of the San Francisco Chronicle shows the charges are serious. It notes the importance of a 2022 deadline to complete the first section of track in the Central Valley, which the FRA believes the Authority will not meet.

Related in Planetizen:

Tuesday, February 19, 2019 in The New York Times

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

March 18 - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.