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California high-speed rail federal funding targeted by House Republican

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California high-speed rail federal funding targeted by House Republican


A Republican lawmaker has set his sights on federal funding for California’s high-speed rail, driven by the ambitious initiative’s escalating costs and significant delays.

On Wednesday, California Representative Kevin Kiley announced that he would be proposing a bill to halt federal funding for the “failed California High-Speed Rail Project.”

“California’s high-speed rail project has failed because of political ineptitude, and there is no plausible scenario where the cost to federal or state taxpayers can be justified,” Kiley said on Wednesday. “Our share of federal transportation funding should go towards real infrastructure needs, such as improving roads that rank among the worst in the country.”

Newsweek reached out to the California High-Speed Rail Authority via phone and email for comment.

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When contacted for comment, Kiley’s office said that the bill would be introduced at the beginning of the 119th Congress, set to commence on January 3.

Kiley’s office added that the bill aims to terminate the project entirely, after which proposals will be introduced advocating for federal funding to be directed toward California’s roads and existing infrastructure.

While Kiley’s bill will need to go through the customary legislative procedures of House, Senate and Executive approval before becoming law, it is only the latest example of opposition to the ballooning costs and minimal returns associated with the massive infrastructure project.

Rep. Kevin Kiley (R-Calif.) arrives with fellow Representatives for the House Republican leadership elections at the Hyatt Regency on Capitol Hill in Washington on Wednesday, Nov. 13, 2024. On Wednesday, Kiley announced that he would…


Angelina Katsanis/POLITICO via AP Images

What is California’s high-speed rail project?

The project, funding for which was first authorized in 2008, is a planned high-speed rail route connecting Los Angeles and San Francisco, with second-phase plans incorporating routes to San Diego and Sacramento.

It was initially expected to be operational by 2020. However, in its 2024 business plan, the California High-Speed Rail Authority set a target to launch service in the Initial Operating Segment (IOS) connecting Merced and Bakersfield between 2030 and 2033.

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The purpose of the project, which would be the United States’ first high-speed rail network, is to create an efficient and environmentally friendly transportation system, reducing traffic congestion, cutting greenhouse gas emissions, and offering Californians an alternative to air and car travel.

“California’s high-speed rail project plays an important role as part of the broader climate solution in our state,” the California State Transportation Agency has said. “It will provide the backbone of our statewide rail service that will increase connectivity between communities, statewide, regional and urban areas.”

Funding for the project comes from the state and federal level, $3.1 billion of which was recently allocated as part of the Biden Administration’s 2023 Bipartisan Infrastructure Law.

Why is the project facing pushback?

The project has been heavily criticized for escalating costs and numerous setbacks in its construction. Opponents argue that state and federal funds would be better spent on alternative transportation projects to connect Californians.

The project was initially expected to cost taxpayers $33 billion. As of February, however, the California High-Speed Rail Authority estimates that completing the route will cost between $89 and $128 billion. It justified this figure by stating that constructing “equivalent highway and air passenger capacity” would require between $179 to $253 billion in funds.

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In recent remarks on the House floor, Kiley called the project “perhaps the single greatest example of government waste in United States history.”

In the Wednesday announcement, Kiley cited recent criticisms of the project from the Department of Government Efficiency, the new advisory body announced by President-elect Donald Trump. Led by billionaires Elon Musk and Vivek Ramaswamy, the unofficial department has been tasked with devising strategies to curb excessive federal spending and eliminate unnecessary government regulations.

“This is a wasteful vanity project, burning billions in taxpayer cash, with little prospect for completion in the next decade,” Ramaswamy wrote of the California project in late November.

Kiley, who also sits on the House Transportation and Infrastructure Committee, has instead advocated for federal funds to go “towards real infrastructure needs” of Californians, such as improvements to existing roads.

Do you have a story we should be covering? Do you have any questions about this article? Contact LiveNews@newsweek.com.

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It rained a lot in October. Is fire season over now?

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It rained a lot in October. Is fire season over now?


This autumn brought something that isn’t always common for much of California — a decent amount of rain in October. Rather than heat waves, there have been umbrellas.

After years in which some of the worst wildfires in state history happened in the fall, a lot of people are wondering: Is fire season over?

It depends on where you live, fire experts say. And simply put, there’s more risk in Southern California right now than Northern California.

“We have not yet seen enough rain in Southern California to end fire season,” said Daniel Swain, a climate scientist with the University of California division of Agriculture and Natural Resources. “But we probably have in Northern California.”

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A car traverses a flooded stretch of Interstate 880 on Monday, Oct. 13, 2025, in Oakland.(AP Photo/Noah Berger) 



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Exclusive: FBI searched California real estate firm linked to bad bank loans

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Exclusive: FBI searched California real estate firm linked to bad bank loans


NEW YORK, Oct 30 (Reuters) – The FBI last month searched the offices of a California real estate investment firm Continuum Analytics, which is linked to bad loans recently disclosed by Zions (ZION.O), opens new tab and Western Alliance (WAL.N), opens new tab, according to legal correspondence seen by Reuters.
Continuum Analytics is an affiliate of the little-known Cantor Group funds which Zions and Western Alliance have said defaulted on about $160 million in loans, spooking markets already on alert for signs corporate credit is weakening.

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On September 11, FBI agents searched Continuum’s Newport Beach, California, offices, law firm Paul Hastings wrote in a September 12 letter seen by Reuters.

Representatives for Continuum did not respond to emails and calls seeking comment. The FBI is an enforcement arm of the Justice Department. Spokespeople for the agencies did not respond to requests for comment. An attorney for Cantor Group said the firm upheld the terms of the Zions and Western Alliance loans and did not provide comment on the government scrutiny.

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Allen Matkins, a law firm that represents other entities linked to Continuum, wrote in an October 2 letter that it learned on September 11 that certain of its clients were the subject of search warrants “in connection with a pending criminal investigation,” and that a grand jury had been convened in the case.

Prosecutors typically convene a grand jury when they intend to gather more evidence. The letters did not say which specific criminal authority was leading the case or what potential misconduct or individuals it was focused on.

Criminal investigations do not necessarily mean any wrongdoing has occurred and many do not result in charges.

Reuters is reporting the FBI search and probe for the first time. The government scrutiny could have ripple effects for what legal filings and public records show is a complex web of investors and lenders tied to Continuum’s real estate dealings, some of which are entangled in civil litigation.

Paul Hastings and Allen Matkins are representing parties embroiled in a complex real estate dispute. The letters relate to those proceedings. The Allen Matkins letter was disclosed in a California court.

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When asked about the letter by Reuters, a lawyer for Paul Hastings said the firm was “working to unravel multiple levels of alleged fraud,” but did not provide more details.

Allen Matkins did not respond to calls and emails seeking comment.

PASSIVE INVESTORS

Zions on October 15 sued Cantor Group fund guarantors Andrew Stupin and Gerald Marcil, among others, to recover more than $60 million in soured commercial and industrial loans. The next day, Western Alliance flagged that it had sued the pair and a different Cantor fund in August to recover nearly $100 million.

Both suits allege key information was misrepresented or not disclosed, breaching the loan terms. Western Alliance also alleges fraud on the part of the Cantor fund.

Continuum acquires and manages distressed real estate assets for groups of investors, and its largest investors include Stupin and Marcil, according to a February arbitration ruling related to the real estate dispute. That ruling found Cantor “consists solely” of Continuum’s legal owner, Deba Shyam, and shares the Continuum offices. Shyam did not respond to calls and emails seeking comment.

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Cantor upheld its contractual obligations and was transparent with its lenders, while the loans were audited and independently reviewed multiple times over the years, said the Cantor attorney Brandon Tran, who also represents Stupin and Marcil.

The pair are passive investors in Cantor and held no operational roles, he added. Cantor in legal filings has disputed that the Western Alliance loan is in default.

In a statement, Marcil said he had invested in several of Continuum’s properties. He denied wrongdoing and said that he was a victim.

Spokespeople for Zions and Western Alliance did not respond to requests for comment.

Reporting by Douglas Gillison and Chris Prentice; Editing by Michelle Price

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California sues truck-makers for breaching zero-emission sales agreement

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California sues truck-makers for breaching zero-emission sales agreement


California air quality officials have sued four truck manufacturers for breaching a voluntary agreement to follow the state’s nation-leading emissions rules, the state announced Tuesday.

What happened: Attorney General Rob Bonta’s office filed a complaint Monday in Alameda County Superior Court, arguing that the country’s four largest truck-makers — Daimler Truck North America, International Motors, Paccar and Volvo North America — violated an enforceable contract that they signed with the California Air Resources Board in 2023.

The lawsuit comes two months after the manufacturers filed their own complaint in federal court, arguing the agreement — known as the Clean Truck Partnership — is no longer valid after Republicans overturned California’s Advanced Clean Truck rule in June through the Congressional Review Act.

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Why it matters: The move sets up a fight to determine whether the federal system or state courts — where CARB would have a higher likelihood of prevailing — will review the case.



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