A massive transfer of wealth for Obama’s pet project in California.
The $2.5 billion has already been spent — but California has failed to deliver the high-speed rail (on time, or at all) as promised.
Therefore, the Trump administration argues, the state has to repay federal taxpayers.
The Los Angeles Times quoted Stanford law professor David Freeman Engstrom, a Stanford law professor, describing Trump’s effort as a “nuclear option.”
The practice of recovering money after a breach of contract, while common in the private sector, was virtually unheard of in government, he explained.
“There is a reluctance to penalize misspending by local government agencies. … Almost never do those violations result in terminations, in part because federal agencies are set up to distribute money, not take it back, and they also lack funding for strict grant enforcement,” the Times added.
But why are not states and local governments held accountable?
This is exactly what happens when no one is accountable.
Trump to Use ‘Nuclear Option’ to Recover $2.5 Bn More from California’s Failed High-Speed Rail Project
Trump is bringing the rules of the private sector to California’s high-speed rail failure, and the state’s Democratic government is shocked.