Trump Wants California to Pay Back $2.5 Billion Spent on High-Speed Rail

Soon after Gavin Newsom announced California's plans to sue the Trump administration over the emergency declaration on the southern border, the Transportation Department said it was exploring legal options to take back the $2.5 billion in federal funds already spent on the state's high-speed rail network.

It was also stated that the administration was terminating a $929 million federal grant to the California High-Speed Rail Authority.

Gov. Newsom fought back saying the Transportation Department's move was "retaliation for the border wall lawsuit."

"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.' This is clear political retribution by President Trump, and we won;t sit idly by, Newsom said. This is California money, and we are going to fight for it."

A spokesman for the Transportation Department said the federal funds were being pulled because the California High-Speed Rail Authority had "failed to make reasonable progress on the project."

The lawsuit over the emergency declaration argues that Congress controls spending and that the president does not have the power to divert funds for the construction of a wall.

President Trump told reporters that he had been 'expecting the court challenge, but was not fazed.'

“We’re going to be very successful with the lawsuit,” Trump said, adding, “It’s an open and closed case.”

Read more at The New York Times.

Photo: Getty Images

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