The future of California’s bullet train is in jeopardy.
While uncertainty has surrounded California’s high-speed rail network since its proposal, things are on even shakier ground now that the Trump administration has stated that they intend to terminate the $928 million federal grant for the $77 billion bullet train that would connect Los Angeles to San Francisco. In a separate statement, the U.S. Department of Transportation explained that it is looking into legal options for California to repay the $2.5 billion in federal funds that have already been allocated to the project.
The letter from the Transportation Department stated that the CHSRA had “materially failed to comply with terms of the agreements and has failed to make reasonable progress on the project.” This letter came days after California and 15 other states sued the Trump administration, stating that the president’s emergency declaration to build a U.S.-Mexico border wall unconstitutional.
In a statement issued to Bisnow, California’s governor, Gavin Newsom called the moved political retribution:
“It’s no coincidence that the [Trump] administration’s threat comes 24 hours after California led 16 states in challenging the President’s farcical ‘national emergency… 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.”
This is what you need to know about the Trump administration’s cancellation of funding for California’s bullet train. Want to keep up with the latest SoCal commercial real estate news, or need help securing commercial space of your own? If so, contact the experts at California Commercial Realty Advisors, Inc. Our dedicated team is ready to assist you with all your commercial and industrial real estate needs today.