The Trump administration has decided to reallocate $2.4 billion from California’s high-speed rail project to a new $5 billion program that aims to enhance passenger rail services across the country.
New Rail Funding Prioritizes Safety, Omits Climate And DEI
The funds were originally withdrawn from California’s high-speed rail project by the Trump administration. The new program, announced on Monday, will prioritize projects in regions with higher birth and marriage rates and those that enhance safety at railroad crossings, reported the Associated Press.
The new program’s guidelines, set by the Trump administration, have omitted any references to diversity or climate change, which were previously included during the Biden administration. The administration has also removed climate change and diversity, equity, and inclusion (DEI) language from other grant requirements, the report said.
Transportation Secretary Sean Duffy took a swipe at the Biden-era language and California Governor Gavin Newsom‘s rail project during the announcement, stating that the new program will prioritize safety without the “radical” DEI and green grant requisites.
The majority of the $5 billion program is funded by the $4 billion that was initially withdrawn from California’s high-speed rail project. The remaining funds are a combination of last year’s announcement and this year’s budget.
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California To Challenge Trump Administration
The Trump administration’s decision to redirect funds from California’s high-speed rail project is the latest in a series of actions taken against the initiative. In July, the administration withdrew $4 billion in federal funding from the project, citing excessive costs and unmet promises. This was followed by an additional $175 million withdrawal in August, further complicating the project’s future.
Despite these setbacks, California Governor Gavin Newsom has remained committed to the state’s transportation goals. Earlier this month, Newsom confirmed that California would not be offering incentives on electric vehicles (EVs) after the September 30 deadline for the $7,500 Federal EV Credit.
Newsom criticized General Motors Co. (NYSE:GM) and its CEO, Mary Barra, for lobbying against California’s EV mandate, which aimed to phase out ICE-powered vehicles by 2035.
California officials also plan to challenge the Trump administration's attempt to redistribute funds, continuing their legal fight over the withdrawal of federal rail project funding.
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