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Trump administration pulls $1B for California rail project

SACRAMENTO, Calif. — The Trump administration is cancelling nearly $1 billion in federal money for California’s high-speed rail project.

The Federal Railroad Administration announced Thursday it will not give California the money, saying the state failed to comply with the terms of its grant and has abandoned the original vision for a train between Los Angeles and San Francisco.

The administration will still try to force California to return another $2.5 billion.

The money is critical to the project and could kill it.

State officials overseeing the project and spokespeople for Gov. Gavin Newsom did not immediately comment.

Newsom’s comments in February that there was not a path to finishing the project as planned prompted federal officials to threaten the funding. Newsom says he’s still committed to the full line.

Kathleen Ronayne, The Associated Press