Trump (R) has Suffered a Legal Setback in Attempts to Cancel over $4 billion in Federal Grants for California’s High-Speed Rail. The California High-Speed Rail Authority called the Cuts Arbitrary and Economically Damaging. Judge Dale Drozd Denied the Department of Justice (DOJ)’s Request to Dismiss the Case.
The Rail Authority Sued after the Federal Railroad Administration (FRA) Withdrew over $4 billion in Central Valley Construction Grants and the Department of Transportation (DOT) Revoked $175 Million More.
A DOJ Attorney Argued the District Court Lacked Authority and the Case belonged in the U.S. Court of Federal Claims.
U.S. District Judge Dale Drozd stated, “Pursuant to the (Administrative Procedure Act), plaintiff argues that defendants’ stated reason for terminating the cooperative agreements was pretextual, unsupported, and a departure from settled policy such that the decision to terminate was arbitrary and capricious.”
The California High-Speed Rail Authority Argued in Court that its Agreements with the Federal Government are Cooperative, not Standard Contracts.
Drozd wrote, “Defendant completed its last annual monitoring review of the high-speed rail project on Oct. 28, 2024, and at that time made no findings for which corrective measures were needed.”
Drozd added, “Under similar circumstances, the Ninth Circuit has held that the source of the rights upon which the plaintiff bases its claims is noncontractual.”
NYC Wins When Everyone Can Vote! Michael H. Drucker
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