President Donald Trump took aim at Newsom Wednesday morning, threatening to force California to repay a multi-billion federal government grant that the state used to finance a "high speed rail" project connecting Los Angeles and San Francisco that Newsom now says will never be completed.
Furthermore, a total of 16 US states sued Trump as well as top members of his administration, arguing that the president's emergency declaration would cause them to lose millions of dollars in federal funding. Mr Newsom is fighting the president over emergency funding for the border wall, so the Trump administration is going after the state's rail funding.
The Trump administration, stepping up its fight with California over the state's struggling high-speed rail project, said Tuesday it plans to rescind a $928 million federal grant.
Just weeks after suing Huntington Beach for allegedly failing to comply with state housing laws, Gov. Gavin Newsom met with more than a dozen city and county officials in Long Beach on Tuesday, warning that local concerns would not override his plans to address the state's housing affordability crisis.
California is leading a 16-state coalition in challenging Trump's power to declare an emergency so he can accelerate his plans for a wall on the U.S. -Mexico border.
The administration's move comes amid escalating tensions between it and Democratic leaders of the most populous US state.
According to California Governor Gavin Newsom, his state will have to scale the project back dramatically, although a smaller section of the line will still be completed. We want that money back now.
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In response, a California state Senate staffer involved in the project told the Los Angeles Times that delays and changes to infrastructure projects are common.
The agreement does not require the California High-Speed Rail Authority to build trains for the track.
In 2017, the Orange County Register wrote: "More time-consuming and tens of billions of dollars more expensive than estimated when California voters approved the funding measure in 2008".
The department also said in a statement it was "actively exploring every legal option to seek the return from California of $2.5 billion in federal funds". Newsom responded by tweeting that the money was "allocated by Congress for this project". Jerry Brown. The lawsuit is California's 46th against the Trump administration.
California Republicans who have long called the project a waste of money applauded the Trump administration's move to take back the money.
The president also said that, besides allegedly wasting federal money, the state improperly changed the terms under which it received the federal government's funding. It's unclear if the federal government can demand that money back before the 2022 deadline. That work is a requirement for keeping the federal money. Instead it could withhold money from other transportation projects.