California: Pulling federal high-speed rail funds would be 'disastrous'

California’s High-Speed Rail Authority on Monday urged the Trump administration to abandon plans to withhold $929 million in funding or seek to claw-back $2.5 billion the state has already received for a rail project.

Brian Kelly, chief executive of the authority, told the Federal Rail Administration in a letter that seeking the return of funds already spent by California would be “disastrous policy” and could put 2,600 people out of work.

The administration last month moved to end funding after California Governor Gavin Newsom said the state would scale back the planned $77.3 billion high-speed rail project that has faced cost hikes, delays and management concerns, but would finish a smaller section of the line.

(Reporting by David Shepardson Editing by Susan Thomas)