
Newsom vows legal fight as Trump admin pulls $4 billion from high-speed rail project
The rail system, whose first USD 10 billion bond issue was approved by California voters in 2008, has built more than 50 major railway structures, including bridges, overpasses and viaducts, and completed more than 60 miles (97 km) of guideway.State Attorney General Rob Bonta told reporters on Thursday he was "poised to take imminent action" on the issue, indicating the dispute would end up in court."California is putting all options on the table to fight this illegal action," Newsom said in a statement.The funding cancellation marked the latest confrontation between the Republican president and a Democratic governor widely viewed as a leading contender for his party's 2028 White House nomination.The two men have clashed over issues from transgender athletes and electric car rules to the use of National Guard troops during Los Angeles protests and even egg prices.'LEGALLY BINDING AGREEMENTS'Ian Choudri, chief executive officer of the California High Speed Rail Authority, said that canceling the federal rail grants "without cause isn't just wrong, it's illegal.""These are legally binding agreements, and the authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said, adding that the program has created some 15,500 jobs.The Federal Railroad Administration issued a 315-page report last month finding the project was plagued by missed deadlines, budget shortfalls and questionable ridership projections.Choudri's rail authority has called those conclusions "misguided," saying they failed to reflect "substantial progress made to deliver high-speed rail in California."Transportation Secretary Sean Duffy chided the project for having failed to lay a single mile of track after spending USD 15 billion over 16 years. But Choudri said installing track is a final step after land acquisition, environmental clearances and construction of supporting structures.Still, the project has faced its share of setbacks.The San Francisco-to-Los Angeles route was initially supposed to be completed by 2020 for USD 33 billion. But the projected cost has since risen to USD 89 billion to USD 128 billion, and the start of service is estimated no sooner than 2030.advertisementAs designed, the system would feature electric locomotives traveling at up to 220 miles per hour (354 kph), powered entirely by renewable energy. Planners said it would eliminate 200 million miles driven by vehicles on highways.'WE HAVE TO PULL THE PLUG'A second phase of the project called for extending the rail line north to Sacramento and south to San Diego. A separate project plans to link Los Angeles and Las Vegas with high-speed rail.Duffy said on Thursday that he was confident the Trump administration will defeat any lawsuit challenging the department's move."We have to pull the plug," he told reporters outside the department's headquarters.In 2021, Democratic President Joe Biden restored a USD 929 million grant for the project that Trump revoked in 2019 during his first term in office after calling the project a "disaster."State Assembly member Corey Jackson, a Southern California Democrat who has questioned the project's soaring costs, said Newsom's call to fight the funding cut could galvanize support for Democrats from organized labor and voters in the area where the first railway jobs would be created despite its Republican leanings.advertisement"The people of San Joaquin Valley will now know that their economic engine is coming from the Democratic Party," Jackson said. "This is also a message to our labor friends. Democrats continue to deliver these high-paying jobs. Republicans continue to try to kill them."Rufus Jeffris, senior vice president of the Bay Area Council, a business-sponsored policy group in the San Francisco area, pointed to economic benefits associated with high-speed rail and called the funding cut unfortunate.- Ends
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Time of India
an hour ago
- Time of India
BGO and Aditya Birla Sun Life AMC invest ₹350 crore in Namo Realtech to fuel real estate expansion
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The Hindu
an hour ago
- The Hindu
U.S. to release result of probe into chip imports in two weeks
The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, U.S. Commerce Secretary Howard Lutnick said on Sunday, as U.S. President Donald Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the "key reasons" the European Union sought to negotiate a broader trade agreement that would "resolve all things at one time." Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new tariffs. He said von der Leyen had avoided the pending chips tariffs "in a much better way." Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the United States. Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action. The Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat. The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors. The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry. Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from August 1. The U.S. relies heavily on chips imported from Taiwan, something Democratic former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the United States.


Time of India
2 hours ago
- Time of India
Rupee rises 9 paise to 86.43 against US dollar in early trade
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