Feb 19 - The U.S. Transportation Department said on Tuesday it will cancel $929 million in federal grant funds awarded by the Obama administration for a California high-speed rail project and is 'actively exploring every legal option' to seek the return of $2.5 billion the state has already received. The department's Federal Railroad Administration said in a letter that the state had 'failed to make reasonable progress' and cited Governor Gavin Newsom's announcement last week that the state would dramatically scale back the project.
