Overview

• The Federal Railroad Administration formally de-obligated $4 billion in unspent grants on July 16 after concluding the project lacks a viable path to completion.
• The U.S. Transportation Department will consult the Justice Department on the possibility of clawing back additional federal funds tied to the rail project.
• Gov. Gavin Newsom and California High-Speed Rail Authority CEO Ian Choudri have condemned the funding pull as illegal and vowed to pursue legal challenges.
• California has pledged about $1 billion a year from cap-and-trade revenues and is seeking public-private partnerships to finance ongoing Central Valley construction.
• Construction remains confined to roughly 171 miles of guideway between Merced and Bakersfield, with more than 50 major structures completed and no intercity segment finished.