(CNBC) The Federal Railroad Administration announced Thursday that it terminated a nearly $929 million grant to the California High-Sped Rail Authority as part of a 2010 agreement.
In a release, the FRA — part of the U.S. Department of Transportation — said California’s rail authority “repeatedly failed to comply with the terms of the FY10 agreement and has 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.”
In addition, the FRA said it “continues to consider all options regarding the return of $2.5 billion in American Recovery and Reinvestment Act funds awarded to CHSRA.”
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