California High-Speed Rail Authority has urged the US Federal Government to reconsider its plans to cancel $929m of funding for the high-speed rail project.
The move follows the Federal Railroad Administration’s (FRA) decision to halt the previously approved funds for the $77.3bn California high-speed rail project.
The FRA began assessing the option to cancel federal funds for the project after the California governor Gavin Newsom decided to scale-back the planned high-speed rail line.
It is also considering recouping the $2.5bn that has already been awarded to the state.
The $929m funding for the project was approved by the previous US administration in 2010.
In a letter to the FRA, California High-Speed Rail Authority chief executive Brian Kelly said that the move to cancel and seek the return of funds will be ‘disastrous’.
The decision could put 2,600 jobs at risk.
The US Department of Transportation, the parent agency of FRA, did not immediately comment on the letter.
Last month, Governor Newsom announced his intention to reduce the scope of the high-speed rail project in his first State of the State Address, citing increasing costs and delays.
As per the revised plan, the state will only complete the under-construction 119-mile (191km) section between Merced and Bakersfield.
The initial plan included construction of a 520-mile (826.8 km) high-speed rail system from Los Angeles to San Francisco.
The high-speed rail system was planned to alleviate traffic congestion and was scheduled to operational by 2033.