GOP wants CA HSR money back

Could stop construction

David Crossley, Nov 30, 10.

The American Recovery and Reinvestment Rescission Act was introduced by House Republicans to return $12 billion in unspent American Recovery and Reinvestment Act funds, also known as stimulus funds, targeting the nation’s largest public works project, California high speed rail, according to a story on Mercury News.

Wasting no time after a victorious midterm election, GOP congressional leaders who promised to slash spending are looking to make an example of the nation’s priciest public works project: California’s $43 billion high-speed railroad.

A coalition of 27 House Republicans, led by the ranking member of the committee that controls spending, wants to yank $2 billion in stimulus funds promised to California to kick-start the massive project.

Rep. Jerry Lewis, R-Redlands, last week introduced the American Recovery and Reinvestment Rescission Act, which would return the final $12 billion in unspent and uncommitted stimulus funds to the US Treasury to help fight the $1.3 trillion U.S. deficit.

About half the remaining stimulus money is set aside for planned high-speed rail projects. The largest is in California, which has spent nearly $200 million of its $2.25 billion award on planning but is saving the rest for construction.

Without stimulus funds - which unlocked another $2 billion in matching state bond money - California would not have enough cash available to start construction and no timeline to do so.