Trump Cancels $929 Million Grant for California Bullet Train

The Trump administration officially canceled $929 million in federal grants earmarked for California’s ambitious high-speed rail project, escalating tensions between the federal government and the most-populous U.S. state.

Federal Railroad Administrator Ronald Batory said in a letter Thursday to Brian Kelly, the chief executive officer of the state agency running the project, that California has failed to show progress and meet requirements under the agreements for the funds. Governor Gavin Newsom, through a spokesman, vowed a court fight.

"It is now clear that California has no foreseeable plans, nor the capability, to pursue that statewide HSR System as originally proposed," Batory wrote.