WASHINGTON (Reuters) – The U.S. Justice Department said late Monday it is in settlement talks with California to resolve a 2019 lawsuit filed by the state after the Trump administration canceled a nearly $1 billion federal grant awarded in 2010 for a high-speed rail project hobbled by extensive delays.
California’s suit claimed the U.S. Transportation Department had lacked legal authority to withhold the $929 million the Obama administration allocated nearly a decade ago but had remained untapped.
The Justice Department and California Attorney General’s Office said in a joint court filing they had “engaged in initial settlement discussions and exchanged settlement correspondence” and asked the case be put on hold during talks to resolve the suit.
(Reporting by David Shepardson; Editing by Himani Sarkar)
