Marcus Aurelius
07-17-2013, 11:00 AM
http://www.foxnews.com/politics/2013/07/17/feds-suspend-review-55b-loan-for-vegas-to-calif-train/
In a letter obtained by FoxNews.com, Transportation Secretary Ray LaHood informed developer XpressWest that he would "suspend further consideration" of the company's request for a $5.5 billion federal loan.
If approved, the loan would be the department's largest ever. Though the project was a favorite of Senate Majority Leader Harry Reid, of Nevada, the request had been the subject of intense Republican criticism, as lawmakers cited concern about "subsidizing" a costly and potentially risky project at a time of mounting federal debt. Consideration of the massive loan also came as the government imposed across-the-board sequester spending cuts.
The company is not hanging up the towel yet. In a statement, XpressWest claimed it was waiting for more information from the administration.
"While the loan process for XpressWest has been suspended, it is our understanding the project is still being reviewed," the statement said. "We believe high speed rail in the western United States is both feasible and desired. We await further information and direction from the Administration. We at XpressWest have always known that a project of this magnitude would undergo painstaking and diligent review."
A Transportation Department spokesman, however, told FoxNews.com that the statement from the company is "incorrect."
"We are no longer considering it," the spokesman said.
According to the Las Vegas Review-Journal, Reid claims the administration has not "permanently foreclosed" the possibility of an investment. He stressed Friday that he plans to keep pushing for "this vital investment."This is only 'vital' to Reid, as it's in his state.
In a letter obtained by FoxNews.com, Transportation Secretary Ray LaHood informed developer XpressWest that he would "suspend further consideration" of the company's request for a $5.5 billion federal loan.
If approved, the loan would be the department's largest ever. Though the project was a favorite of Senate Majority Leader Harry Reid, of Nevada, the request had been the subject of intense Republican criticism, as lawmakers cited concern about "subsidizing" a costly and potentially risky project at a time of mounting federal debt. Consideration of the massive loan also came as the government imposed across-the-board sequester spending cuts.
The company is not hanging up the towel yet. In a statement, XpressWest claimed it was waiting for more information from the administration.
"While the loan process for XpressWest has been suspended, it is our understanding the project is still being reviewed," the statement said. "We believe high speed rail in the western United States is both feasible and desired. We await further information and direction from the Administration. We at XpressWest have always known that a project of this magnitude would undergo painstaking and diligent review."
A Transportation Department spokesman, however, told FoxNews.com that the statement from the company is "incorrect."
"We are no longer considering it," the spokesman said.
According to the Las Vegas Review-Journal, Reid claims the administration has not "permanently foreclosed" the possibility of an investment. He stressed Friday that he plans to keep pushing for "this vital investment."This is only 'vital' to Reid, as it's in his state.