[www.latimes.com]

"the state authority submitted since late 2016, repeatedly admonishing the state for 'deficiencies and errors' in its documents. The letter alleges the state made ineligible expenditures from the grants, including giving a bonus to consultants for meeting the terms of the grant and paying for expenses 'related to a consultant’s name change.'

Even more troubling for the project is a warning, reiterated Thursday, that federal officials are looking into recapturing $2.5 billion in another grant that the state already has spent. U.S. Transportation Secretary Elaine Chao has said the government has a right to get repayment of that money, based on reductions in the original scope of the rail system. Chao previously called the cutbacks a 'classic bait and switch.'

In a statement, the Federal Railroad Administration said it was still weighing “all options” on asking California to reimburse the $2.5 billion. The Transportation Department theoretically could withhold highway or transit funds from other programs to recoup the money, putting the state in the difficult position of having to cover those cutbacks."