California, USDOT in Talks to Settle Suit

California and the U.S. Department of Justice are talking about a settlement in a lawsuit the state filed against USDOT after it canceled a $929 million grant for the state’s high speed rail project.

That action was taken during the Trump administration. In its lawsuit, filed in 2019, California argued that USDOT lacked the legal authority to withhold the funds, which had been granted during the Obama administration.

During the Trump presidency, the Federal Railroad Administration contended that the state “failed to make reasonable progress on the project.”

California officials countered that the cancellation of the grant stemmed from Trump’s “overt hostility” toward the state.

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