The Trump administration said on Thursday, it was formally canceling $929 million in previously awarded funding for California's high-speed rail program after rejecting an appeal by the state.
The U.S. railway regulator, the Federal Railroad Administration (FRA), said on Thursday it had canceled the funding awarded in a 2010 agreement after it said the state had "repeatedly failed to comply" and "failed to make reasonable progress on the project."
"Additionally, California has abandoned its original vision of a high-speed passenger rail service connecting San Francisco and Los Angeles, which was essential to its applications for FRA grant funding."
"It is now clear that California has no foreseeable plans, nor the capability, to pursue that statewide High-Speed Rail System as originally proposed," wrote Ronald Batory, the federal railroad administrator, adding that the state "is chronically behind in project construction activities and has not been able to correct or mitigate its deficiencies."
In a statement, the FRA said it was still considering "all options" on seeking the return of $2.5 billion in federal funds the state has already received.