The California High Speed Rail Authority has released this statement in response to this letter: Good evening stakeholders: Please see the note below from CEO Brian Kelly. Today the Federal Railroad Administration (FRA) sent a letter to the California High-Speed Rail Authority advising that it intends to terminate our grant agreement and de-obligate the $928 million in federal funds for the project. The FRA further advised that it is also exploring options to recover the Federal ARRA funds that have already been expended on the environmental documents for the full 520-mile system and for construction in the Central Valley. The FRA communicated that it has determined that the Authority has failed to comply with the terms of the grant agreements. This determination is both ill-advised and misguided. We are preparing a formal response to the FRA’s letter. Our commitment to delivering the requirements of the grant agreements remains. We intend to deliver the California high-speed rail program including all Phase 1 environmental documents for the San Francisco to LA/Anaheim system. And we are focusing on advancing the Merced to Bakersfield line as outlined by Governor Newsom in his State of the State address. We are continuing our efforts to deliver this transformational program and to expand the economic and environmental benefits to the thousands of hard-working families in the Central Valley. Onward. Brian Kelly CEO